Inheritance Tax Act 1984 section 58

Relevant property

Section 58 defines "relevant property" for the purposes of the inheritance tax regime that applies to discretionary trusts and similar settlements, and sets out the categories of settled property that are excluded from this definition.

• Relevant property is settled property with no qualifying interest in possession, but numerous categories of trust property are excluded, including charitable trusts, pension schemes, employee benefit trusts, and excluded property.
• Certain interest-in-possession trusts created on or after 22 March 2006 within employee benefit trusts are treated as relevant property and subject to the periodic and exit charges.
• Lump sum death benefits from pension schemes are treated as held for the purposes of the scheme (and therefore excluded from being relevant property) provided they are paid within specified time limits.
• Specific definitions are provided for trade or professional compensation funds, asbestos compensation settlements, and decommissioning security settlements, all of which fall outside the relevant property regime.