Inheritance Tax Act 1984

151 Treatment of pension rights, etc. U.K.

(1) This section applies to any fund to which section [F1 615(3) of the Taxes Act 1988] applies, to any scheme approved under section [F2 620 or 621] of that Act, to any exempt approved scheme or statutory scheme as defined in Chapter [F3 I of Part XIV of that Act] and to any other sponsored superannuation scheme as defined in section [F4 624 of that Act].

[F5 (1A) This section also applies to approved personal pension arrangements within the meaning of Chapter [F6 IV of Part XIV of the Taxes Act 1988]; and references in the following provisions of this section to a scheme shall be construed accordingly.]

(2) An interest in or under a fund or scheme to which this section applies which comes to an end on the death of the person entitled to it shall be left out of account in determining for the purposes of this Act the value of his estate immediately before his death, if the interest—

(a) is, or is a right to, a pension or annuity, and

(b) is not an interest resulting (whether by virtue of the instrument establishing the fund or scheme or otherwise) from the application of any benefit provided under the fund or scheme otherwise than by way of a pension or annuity.

(3) Sections 49 to 53 above shall not apply in relation to an interest satisfying the conditions of paragraphs (a) and (b) of subsection (2) above.

(4) In relation to an interest in or under a fund or scheme to which this section applies, section 5(2) above shall apply as if the words “other than settled property” were omitted (in both places).

(5) Where a benefit has become payable under a fund or scheme to which this section applies, and the benefit becomes comprised in a settlement made by a person other than the person entitled to the benefit, the settlement shall for the purposes of this Act be treated as made by the person so entitled.

Textual Amendments

F1 Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1), Sch. 29, para. 32.Originally

“218 of the Taxes Act”.

F2 Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1), Sch. 29, para. 32.Originally

“226 or 226A”.

F3 Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1), Sch. 29, para. 32.Originally

“II of Part II of the Finance Act 1970”.

F4 Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1), Sch. 29, para. 32.Originally

“226(11) of the Taxes Act”.

F5 Finance Act 1987 (No.2) s. 98(4),with effect from 23July 1987.

F6 Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1), Sch. 29, para. 32.Originally

“II of Part I of the Finance (No.2) Act 1987”.