Section 55A | Purchased settlement powers ^F1

(1)Where a person makes a disposition by which he acquires a settlement power for consideration in money or money’s worth—^F1

(a)section 10(1) above shall not apply to the disposition;^F1

(b)the person shall be taken for the purposes of this Act to make a transfer of value;^F1

(c)the value transferred shall be determined without bringing into account the value of anything which the person acquires by the disposition; and^F1

(d)sections 18 and 23 to 27 above shall not apply in relation to that transfer of value.^F1

(2)For the purposes of this section, a person acquires a settlement power if he becomes entitled—^F1

(a)to a settlement power,^F1

(b)to exercise, or to secure or prevent the exercise of, a settlement power (whether directly or indirectly), or^F1

(c)to restrict, or secure a restriction on, the exercise of a settlement power (whether directly or indirectly),^F1

as a result of transactions which include a disposition (whether to him or another) of a settlement power or of any power of a kind described in paragraph (b) or (c) above which is exercisable in relation to a settlement power.