PART III SETTLED PROPERTY
CHAPTER IIF9 INTERESTS IN POSSESSION, REVERSIONARY INTERESTS AND SETTLEMENT POWERS
53 Exceptions from charge under section 52.
1
Tax shall not be chargeable under section 52 above if the settled property is excluded property.
F11A
Tax shall not be chargeable under section 52 above if—
a
the person whose interest comes to an end became beneficially entitled to the interest before 22nd March 2006,
b
the interest comes to an end on or after that day, and
c
immediately before the interest comes to an end, section 71A or 71D below applies to the property in which the interest subsists.
2
Tax shall not be chargeable under section 52 above (except in the case mentioned in subsection (4)(b) of that section) if the person whose interest in the property comes to an end becomes on the same occasion beneficially entitled to the property or to another interest in possession in the property.
F2F32A
Subsection (2) above applies by virtue of the person becoming beneficially entitled on or after 12 March 2008 to another interest in possession in the property only if that other interest is—
a
a disabled person's interest, or
b
a transitional serial interest;
and that is the case irrespective of whether the person's beneficial entitlement to the interest in possession in the property which comes to an end is one which began before, or on or after, 22 March 2006.
3
Tax shall not be chargeable under section 52 above if the interest comes to an end during the settlor’s life and on the same occasion the property in which the interest subsisted reverts to the settlor.
4
Tax shall not be chargeable under section 52 above if on the occasion when the interest comes to an end—
a
the settlor’s spouse F4or civil partner, or
b
where the settlor has died less than two years earlier, the settlor’s widow or widower F5or surviving civil partner,
becomes beneficially entitled to the settled property and is domiciled in the United Kingdom.
5
Subsections (3) and (4) above shall not apply in any case where—
a
b
their application depends upon a reversionary interest having been transferred into a settlement on or after 10th March 1981.
6
For the purposes of subsection (5) above a person shall be treated as acquiring an interest for a consideration in money or money’s worth if he becomes entitled to it as a result of transactions which include a disposition for such consideration (whether to him or another) of that interest or of other property.
7
Where the acquisition of the interest was before 12th April 1978, subsection (5)(a) above shall have effect, so far as it relates to subsection (3) above, with the omission of the reference to the spouse F8or civil partner of the settlor.
8
Subsection (6) above shall not apply where the person concerned became entitled to the interest before 12th April 1978.
Words 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)