SCHEDULES

SCHEDULE 20U.K.Inheritance tax: rules for trusts etc

Part 3U.K.Related amendments in IHTA 1984

Tax where interest in possession ends, or is treated as ending, during beneficiary's lifeU.K.

14(1)Section 53 of IHTA 1984 (exceptions from tax charge under section 52) is amended as follows.U.K.

(2)After subsection (1) insert—

(1A)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.

(3)After subsection (2) insert—

(2A)Where—

(a)a person becomes beneficially entitled on or after 22nd March 2006 to an interest in possession in settled property, and

(b)the interest is not a disabled person's interest,

subsection (2) above applies in relation to the coming to an end of the interest with the omission of the words “or to another interest in possession in the property”.