Inheritance Tax Act 1984 section 62C

Protected settlements

Section 62C defines what counts as a "protected settlement" for the purposes of the same-day addition rules, shielding certain pre-December 2014 settlements from those rules provided no new value has been added by the settlor after that date, or only through an unchanged will where the settlor died before 6 April 2017.

• A protected settlement must have been created before 10 December 2014 and satisfy one of two conditions.
• Condition A is met where the settlor has made no transfers of value on or after 10 December 2014 that increased the value of property in the settlement.
• Condition B is met where the only increase in the settlement's value after 10 December 2014 arose from the settlor's death before 6 April 2017, under a will whose relevant provisions were substantially unchanged since before that date.
• A "protected testamentary disposition" means a will provision that, at the settlor's death, is in substance the same as it was immediately before 10 December 2014.