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Where shares in a newspaper publishing company, or a newspaper holding company are the only or principal assets in the settlement, IHTA84/S86 is applied to the trust by IHTA84/S87(1) as if newspaper publishing companies were included among the persons within IHTA84/S86(1)(a) and (b).

IHTA84/S87(3) defines the terms ‘newspaper company� and ‘newspaper holding company� and specifies the circumstances in which shares are to be treated as ‘principal property comprised in the settlement�.

Where the conditions are satisfied, you should apply the instructions that apply to employee benefit trusts to newspaper trusts in exactly the same way - charges to and exemptions from Inheritance Tax apply as outlined in the instructions.

No exemption for transfer from discretionary trust to newspaper trust

HMRC’s view is that IHTA84/S75 does not apply to transfers from discretionary trusts to newspaper trusts. The title at IHTA84/S75 refers to employee trusts only while IHTA84/S72 refers to both employee and newspaper trusts.

More importantly, IHTA84/S75 uses the words ‘held on trusts of the description specified in S86(1)� whilst IHTA/S72 uses the words ‘property to which S86 applies.� The words at IHTA84/S72 clearly cover newspaper trusts, but on the face of it those at IHTA/S75 do not. In any case it is unlikely that a newspaper trust would satisfy all the conditions in IHTA84/S75(2).