Inheritance Tax Act 1984 Schedule 4 paragraph 1

Giving of directions

Schedule 4, paragraph 1 deals with the power of the Treasury to give directions in respect of settled property (and proposed settlements) that meets certain conditions, including the treatment of property already exempt under earlier legislation.

• Where settled property meets the conditions in paragraph 2(1), the Treasury must give a direction on receipt of a claim.
• The Treasury may also give a direction for property that is proposed to be placed into a settlement or held on particular trusts, provided the conditions would be met once the property is so held.
• Property settled before the commencement of Finance Act 1982, section 94, which was exempt under Finance Act 1976, section 84, is automatically treated as if a direction has already been given.
• The direction mechanism provides a formal process for confirming that settled property qualifies for the relevant inheritance tax treatment.