Inheritance Tax Act 1984 Schedule 1A paragraph 3

The components of the estate

Schedule 1A paragraph 3 defines the three components into which a deceased person's estate is divided for the purpose of determining whether the charitable giving condition is met, thereby qualifying for the reduced 36% inheritance tax rate.

• The estate is split into three components: the survivorship component, the settled property component, and the general component
• The survivorship component covers jointly held property that passes automatically on death by right of survivorship (or equivalent mechanisms in Scotland or overseas jurisdictions)
• The settled property component covers trust property in which the deceased held a qualifying interest in possession immediately before death
• The general component is a residual category covering all other estate property, except gifts with reservation under the Finance Act 1986