Introduction Summary
1.Section 210 amends the inheritance tax (IHT) settled property provisions. Where a UK-domiciled individual acquires an interest in settled property, which as a result of certain arrangements gives rise to a reduction in the value of that individual’s estate, a charge to IHT will arise. In addition if the settled property was formerly excluded property it will cease to have that status.
2.The charge will largely replicate the tax treatment that a UK-domiciled individual would have incurred if the assets within the offshore trust, which are in some cases ‘excluded property’ and which would otherwise be ignored for IHT purposes, had instead been transferred to a UK trust.
3.The changes will have effect from 20 June 2012 in relation to arrangements entered into on or after that date.