13.7 DOTAS, inheritance tax and lump sum IHT plans
In the Pre-Budget report in December 2009, the Government announced the introduction of provisions (including draft legislation) to target two trust-based IHT schemes. The main aim of these schemes was to transfer property into a relevant property settlement (e.g. a discretionary trust) at a much depressed value for IHT purposes. Thus, the 20% entry charge (on transfers that exceeded the nil rate band) could be reduced or avoided.