Textual Amendments
F1Words in the title of Chapter II substituted (24.7.2002 with effect in relation to transfers of value on or after 17.4.2002) by virtue of 2002 c. 23, s. 119(5)(6)
(1)Where a person beneficially entitled to an interest in possession in settled property disposes of his interest the disposal—
(a)is not a transfer of value, but
(b)shall be treated for the purposes of this Chapter as the coming to an end of his interest;
and tax shall be charged accordingly under section 52 below.
[F2(1A)Where the interest disposed of is one to which the person became beneficially entitled on or after 22nd March 2006, subsection (1) above applies in relation to the disposal only if the interest is—
(a)an immediate post-death interest,
(b)a disabled person's interest within section 89B(1)(c) or (d) below, or
(c)a transitional serial interest,
[F3or falls within section 5(1B) above.]
(1B)Where the interest disposed of is one to which the person became beneficially entitled before 22nd March 2006, subsection (1) above does not apply in relation to the disposal if, immediately before the disposal, section 71A or 71D below applies to the property in which the interest subsists.]
(2)Where a disposition satisfying the conditions of section 11 above is a disposal of an interest in possession in settled property, the interest shall not by virtue of subsection (1) above be treated as coming to an end.
(3)References in this section to any property or to an interest in any property include references to part of any property or interest.
Textual Amendments
F2S. 51(1A)(1B) inserted (22.3.2006) by Finance Act 2006 (c. 25), s. 156, Sch. 20 paras. 7, 12
F3Words in s. 51(1A) inserted (with effect as mentioned in s. 53(10) of the amending Act) by Finance Act 2010 (c. 13), s. 53(4)(b)