I have a Trust which has just passed a 10 year anniversary. The Trust, was created 20 years ago on the same day as two other Trusts. At settlement each Trust was an A&M. The other two Trusts were qualifying IIP’s by 22 March 2006; each Trust has a sole beneficiary and the beneficiaries had reached the date that income was awarded to them.
For this Trust however, a qualifying IIP was not in place by 22 March 2006, nor did the Trustees change the deed so as to fall into an 18-25 Trust. The beneficiary received their right to capital in the period between 22 March 2006 and 6 April 2008.
Question 1, When calculating the value of the property comprised in the Trust, related settlements must be taken into account (s66(4)), however this charge is occurring after 17 November 2005. Does the initial value (and additional transfers caught by the same day additions rule s62a) of these two other Trusts (which are not relevant property) no longer need to be included in our calculation? I have read regarding the 17 November 2005 date but cant seem to find the legislative reference.
Question 2, the first 10 year on the property was overlooked due to the legislation change. I am also reporting this now. From what date is the property within the relevant property regime; 6 April 2008 or the date the beneficiary received his right to income? I recall the latter being the case from my training but again cant find the legislative reference.
Question 3, the Trust was created by husband and wife. Are two IHT forms needed to take account of the Trusts 2 NRB’s or can they be combined on one form?