A gain may arise on the creation of a settlement (see ¶357-150). Where property is transferred to UK resident trustees in circumstances in which the disposal is:

a chargeable transfer for inheritance tax purposes (IHT) or transfer which would be chargeable but for the availability of the inheritance tax annual exemption; or

exempt from inheritance tax under specific provisions,

any gain on the transfer may be held over (see TCGA 1992, s. 260 and ¶548-700).

In practice, this relief will be in point where assets are transferred to a settlement in which there is no qualifying interest in possession (see ¶362-525).

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