PART 6Other provisions

Trusts

291Trusts with vulnerable beneficiary: meaning of “disabled person”

1

Schedule 1A to FA 2005 (meaning of “disabled person”) is amended as follows.

2

In paragraph 1—

a

for paragraph (c) substitute—

c

a person in receipt of a disability living allowance by virtue of entitlement to—

i

the care component at the highest or middle rate, or

ii

the mobility component at the higher rate,”, and

b

in paragraph (d), omit “by virtue of entitlement to the daily living component”.

3

In paragraph 3, after “rate” insert “ , or to the mobility component at the higher rate, ”.

4

In paragraph 4, omit “by virtue of entitlement to the daily living component”.

5

The amendments made by this section have effect—

a

for the purposes of sections 89, 89A and 89B of IHTA 1984, in relation to property transferred into settlement on or after 6 April 2014, and

b

for all other purposes, for the tax year 2014-15 and subsequent tax years.