IHTM42801 - Special trusts: summary

颁补迟别驳辞谤颈别蝉听

Types of excluded discretionary trusts known commonly as special trusts (or favoured trusts) are聽聽

  • Temporary charitable trusts聽

  • Protective trusts聽

  • Trusts for disabled persons聽聽

  • Employee and newspaper trusts聽聽

  • Accumulation and maintenance trusts (A&M) prior to 22 March 2006.聽聽

Other excluded trusts and property within IHTA84/S58 are聽

  • 聽Heritage Maintenance trusts聽

  • Pension funds聽

  • Trade or professional compensation funds聽

  • Asbestos Compensation trusts聽

  • Decommissioning Security trusts聽

  • Excluded property聽

Charges on the trusts聽

The common feature of these types of settlement is that they do not contain relevant property, and so are not subject to the ten year anniversary and proportionate charges under IHTA84/S64 and IHT84/S65. However, the property may be subject to a different charge on leaving the trust or where the trust no longer satisfies the conditions for special treatment or where the trustees make an uncommercial disposition that reduces the value of the trust property.聽

There is a normal Inheritance Tax (IHT) exit charge (IHTA84/S65) when an existing discretionary trust is converted into one of these special trusts. (IHTM42110)

Two new types of trust were introduced in FA2006 which also have their own IHT charging regime聽聽