Relevant Property trust or is it?

I have a pre-2006 IIP Trust with two IIP beneficiaries (principal and secondary).

The secondary beneficiary is now deceased and as the trust continues their share becomes a relevant property trust. Does this mean the trust is effectively split in two, with half being taxed as a relevant property trust and half not? Or does it taint the whole trust?

Lucy Orrow
Lambert Chapman LLP

The continuing pre-2006 IIP will retain its status for HIT, with only
the deceased life tenant’s former share coming within the relevant
property regime.

Paul Saunders

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