PART III SETTLED PROPERTY
CHAPTER III SETTLEMENTS WITHOUT INTERESTS IN POSSESSION , AND CERTAIN SETTLEMENTS IN WHICH INTERESTS IN POSSESSION SUBSIST
Interpretation
58 Relevant property.
(1)
In this Chapter “relevant property” means settled property in which no qualifying interest in possession subsists, other than—
(a)
property held for charitable purposes only, whether for a limited time or otherwise;
(b)
(c)
property held on trusts which comply with the requirements mentioned in paragraph 3(1) of Schedule 4 to this Act, and in respect of which a direction given under paragraph 1 of that Schedule has effect;
F3(d)
property which is held for the purposes of a registered pension scheme F4, a qualifying non-UK pension scheme or a section 615(3) scheme;
(e)
property comprised in a trade or professional compensation fund;
F7(eb)
property comprised in a decommissioning security settlement; and
(f)
excluded property.
F8(1A)
Settled property to which section 86 below applies is “relevant property” for the purposes of this Chapter if—
(a)
an interest in possession subsists in that property, and
(b)
that interest falls within subsection (1B) or (1C) below.
(1B)
An interest in possession falls within this subsection if—
(a)
an individual is beneficially entitled to the interest in possession,
(b)
the individual became beneficially entitled to the interest in possession on or after 22nd March 2006, and
(c)
the interest in possession is—
(i)
not an immediate post-death interest,
(ii)
not a disabled person's interest, and
(iii)
not a transitional serial interest.
(1C)
An interest in possession falls within this subsection if—
(a)
a company is beneficially entitled to the interest in possession,
(b)
the business of the company consists wholly or mainly in the acquisition of interests in settled property,
(c)
the company has acquired the interest in possession for full consideration in money or money's worth from an individual who was beneficially entitled to it,
(d)
the individual became beneficially entitled to the interest in possession on or after 22nd March 2006, and
(e)
immediately before the company acquired the interest in possession, the interest in possession was neither an immediate post-death interest nor a transitional serial interest.
(2)
(3)
In subsection (1)(e) above “trade or professional compensation fund” means a fund which is maintained or administered by a representative association of persons carrying on a trade or profession and the only or main objects of which are compensation for or relief of losses or hardship that, through the default or alleged default of persons carrying on the trade or profession or of their agents or servants, are incurred or likely to be incurred by others.
F10(4)
In subsection (1)(ea) above “asbestos compensation settlement” means a settlement—
(a)
the sole or main purpose of which is making compensation payments to or in respect of individuals who have, or had before their death, an asbestos-related condition, and
(b)
which is made before 24 March 2010 in pursuance of an arrangement within subsection (5) below.
(5)
An arrangement is within this subsection if it is—
(a)
a voluntary arrangement that has taken effect under Part 1 of the Insolvency Act 1986 or Part 2 of the Insolvency (Northern Ireland) Order 1989,
(b)
a compromise or arrangement that has taken effect under section 425 of the Companies Act 1985, Article 418 of the Companies (Northern Ireland) Order 1986 or Part 26 of the Companies Act 2006, or
(c)
an arrangement or compromise of a kind corresponding to any of those mentioned in paragraph (a) or (b) above that has taken effect under, or as a result of, the law of a country or territory outside the United Kingdom.
F11(6)
For the purposes of subsection (1)(eb) above a settlement is a “decommissioning security settlement” if the sole or main purpose of the settlement is to provide security for the performance of obligations under an abandonment programme.
(7)
In subsection (6)—
“abandonment programme” means an abandonment programme approved under Part 4 of the Petroleum Act 1998 (including such a programme as revised);
“security” has the same meaning as in section 38A of that Act.
59 Qualifying interest in possession.
F12(1)
In this Chapter “qualifying interest in possession” means—
(a)
an interest in possession—
(i)
to which an individual is beneficially entitled, and
(ii)
which, if the individual became beneficially entitled to the interest in possession on or after 22nd March 2006, is an immediate post-death interest, a disabled person's interest or a transitional serial interest, or
(b)
an interest in possession to which, where subsection (2) below applies, a company is beneficially entitled.
(2)
This subsection applies where—
(a)
the business of the company consists wholly or mainly in the acquisisition of interests in settled property, and
(b)
the company has acquired the interest for full consideration in money or money’s worth from an individual who was beneficially entitled to it.F13, and
(c)
if the individual became beneficially entitled to the interest in possession on or after 22nd March 2006, the interest is an immediate post-death interest, or a disabled person's interest within section 89B(1)(c) or (d) below or a transitional serial interest, immediately before the company acquires it.
(3)
Where the acquisition mentioned in paragraph (b) of subsection (2) above was before 14th March 1975—
(a)
the condition set out in paragraph (a) of that subsection shall be treated as satisfied if the business of the company was at the time of the acquisition such as is described in that paragraph, and
(i)
under Part 4 of the Financial Services and Markets Act 2000, or
(ii)
under paragraph 15 of Schedule 3 to that Act F16 (as a result of qualifying for authorisation under paragraph 12(1) of that Schedule),
60 Commencement of settlement.
In this Chapter references to the commencement of a settlement are references to the time when property first becomes comprised in it.
61 Ten-year anniversary.
(1)
In this Chapter “ten-year anniversary” in relation to a settlement means the tenth anniversary of the date on which the settlement commenced and subsequent anniversaries at ten-yearly intervals, but subject to subsections (2) to (4) below.
(2)
The ten-year anniversaries of a settlement treated as made under section 80 below shall be the dates that are (or would but for that section be) the ten-year anniversaries of the settlement first mentioned in that section.
(3)
No date falling before 1st April 1983 shall be a ten-year anniversary.
(4)
Where—
(a)
the first ten-year anniversary of a settlement would apart from this subsection fall during the year ending with 31st March 1984, and
(b)
during that year an event occurs in respect of the settlement which could not have occurred except as the result of some proceedings before a court, and
(c)
the event is one on which tax was chargeable under Chapter II of Part IV of the M2Finance Act 1982 (or, apart from Part II of Schedule 15 to that Act, would have been so chargeable),
the first ten-year anniversary shall be taken to be 1st April 1984 (but without affecting the dates of later anniversaries).
62 Related settlements.
(1)
For the purposes of this Chapter two settlements are related if and only if—
(a)
the settlor is the same in each case, and
(b)
they commenced on the same day,
but subject to subsection (2) below.
(2)
Two settlements are not related for the purposes of this Chapter if all the property comprised in one or both of them was immediately after the settlement commenced held for charitable purposes only without limit of time (defined by a date or otherwise).
63 Minor interpretative provisions.
In this Chapter, unless the context otherwise requires—
“payment” includes a transfer of assets other than money;
“quarter” means period of three months.