Inheritance Tax Act 1984 section 62

Related settlements

Section 62 defines when two settlements are treated as related to each other for the purposes of the inheritance tax rules on settlements.

• Two settlements are related only if they have the same settlor and both commenced on the same day.
• The settlements do not need to be discretionary trusts in order to be treated as related.
• An exception applies where all the property in one or both settlements is held exclusively for charitable purposes without any time limit.
• The concept of related settlements is important because property in related settlements may be aggregated when calculating inheritance tax charges on trust property.