Section 144 | Distribution etc. from property settled by will.
From legislation.gov.uk
(1)Subsection (2) below applies where property comprised in a person’s estate immediately before his death is settled by his will and, within the period of two years after his death and before any interest in possession has subsisted in the property, there occurs—F1
(a)an event on which tax would (apart from subsection (2) below) be chargeable under any provision, other than section 64 or 79, of Chapter III of Part III of this Act, orF2
(b)an event on which tax would be so chargeable but for section 65(4), 75 , 75A or 76 above or paragraph 16(1) of Schedule 4 to this Act.F3F4
(1A)Where the testator dies on or after 22nd March 2006, subsection (1) above shall have effect as if the reference to any interest in possession were a reference to any interest in possession that is—F5
(a)an immediate post-death interest, orF5
(b)a disabled person's interest.F5
(2)Where this subsection applies by virtue of an event within paragraph (a) of subsection (1) above, tax shall not be charged under the provision in question on that event; and in every case in which this subsection applies in relation to an event, this Act shall have effect as if the will had provided that on the testator’s death the property should be held as it is held after the event.F6
(3)Subsection (4) below applies where—F7
(a)a person dies on or after 22nd March 2006,F7
(b)property comprised in the person's estate immediately before his death is settled by his will, andF7
(c)within the period of two years after his death, but before an immediate post-death interest or a disabled person's interest has subsisted in the property, there occurs an event that involves causing the property to be held on trusts that would, if they had in fact been established by the testator's will, have resulted in—F7
(i)an immediate post-death interest subsisting in the property, orF7
(ii)section 71A or 71D above applying to the property.F7
(4)Where this subsection applies by virtue of an event—F7
(a)this Act shall have effect as if the will had provided that on the testator's death the property should be held as it is held after the event, butF7
(b)tax shall not be charged on that event under any provision of Chapter 3 of Part 3 of this Act.F7
(5)Subsection (4) above also applies where—F7
(a)a person dies before 22nd March 2006,F7
(b)property comprised in the person's estate immediately before his death is settled by his will,F7
(c)an event occurs—F7
(i)on or after 22nd March 2006, andF7
(ii)within the period of two years after the testator's death,F7
that involves causing the property to be held on trusts within subsection (6) below,
(d)no immediate post-death interest, and no disabled person's interest, subsisted in the property at any time in the period beginning with the testator's death and ending immediately before the event, andF7
(e)no other interest in possession subsisted in the property at any time in the period beginning with the testator's death and ending immediately before 22nd March 2006.F7
(6)Trusts are within this subsection if they would, had they in fact been established by the testator's will and had the testator died at the time of the event mentioned in subsection (5)(c) above, have resulted in—F7
(a)an immediate post-death interest subsisting in the property, orF7
(b)section 71A or 71D above applying to the property.F7