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Home / Simons-Taxes /IHT, trusts and estates /Part I5 Settled property /Division I5.3 Settlements within the relevant property regime /Relevant property settlements—miscellaneous points / I5.371 Settled property in which the settlor or his spouse has an initial IIP
Commentary

I5.371 Settled property in which the settlor or his spouse has an initial IIP

IHT, trusts and estates

Special rules apply for settled property where the settlor (or his spouse or civil partner) has an initial interest in possession.

This term includes a widow, widower or surviving civil partner.

Settlement made after 26 March 1974 and before 22 March 2006

If a settlement is made after 26 March 1974 and before 22 March 2006, and the settlor, his spouse or civil partner has an initial interest in possession the property shall be treated as not having been settled on that occasion.

However, when the property or any part of it becomes held on trusts under which one or more of those persons is entitled to a qualifying interest in possession (QIIP), the property shall be treated as becoming comprised in a separate settlement made by the one who ceased to be entitled to QIIP1.

Settlement made on or after 22 March 2006

Where property becomes comprised in a settlement on or after 22 March 2006, and the settlor, spouse or civil partner

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