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Contents

Legislation
Inheritance Tax Act 1984

CHAPTER II INTERESTS IN POSSESSION, REVERSIONARY INTERESTS AND SETTLEMENT POWERS

  • Section 49 Treatment of interests in possession.
  • Section 49A Immediate post-death interest
  • Section 49B Transitional serial interests
  • Section 49C Transitional serial interest: interest to which person becomes entitled during period 22nd March 2006 to 5th October 2008
  • Section 49D Transitional serial interest: interest to which person becomes entitled on death of spouse or civil partner on or after 6th October 2008
  • Section 49E Transitional serial interest: contracts of life insurance
  • Section 50 Interests in part, etc.
  • Section 51 Disposal of interest in possession.
  • Section 52 Charge on termination of interest in possession.
  • Section 53 Exceptions from charge under section 52.
  • Section 54 Exceptions from charge on death
  • Section 54A Special rate of charge where settled property affected by potentially exempt transfer.
  • Section 54B Provisions supplementary to section 54A.
  • Section 55A Purchased settlement powers
  • Section 55 Reversionary interest acquired by beneficiary.
  • Section 56 Exclusion of certain exemptions.
  • Section 57 Application of certain exemptions.
  • Section 57A Relief where property enters maintenance fund.
  1. Chapter II · INTERESTS IN POSSESSION, REVERSIONARY INTERESTS AND SETTLEMENT POWERS
  2. Application of certain exemptions.

Section 57 | Application of certain exemptions.

From legislation.gov.uk

(1)Subject to subsection (3) below, references to transfers of value in sections 19 and 22 above shall be construed as including references to events on the happening of which tax is chargeable under section 52 above, and references to the transferor and (in section 22(3) and (4)) to a disposition shall be construed accordingly.

(2)For the purposes of its application, by virtue of subsection (1) above, to the termination of interests in possession in settled property, section 22 above shall have effect as if—

(a)references to transfers of value made by gifts in consideration of marriage or civil partnership were references to the termination of such interests in consideration of marriage or civil partnership;F1

(b)references to outright gifts were references to cases where the property ceases on the termination to be settled property; and

(c)references to cases where the property is settled by the gift were references to cases where it remains settled property after the termination.

(3)Subsection (1) above shall not apply to a transfer of value—

(a)unless the transferor has in accordance with subsection (4) below given to the trustees of the settlement a notice informing them of the availability of an exemption, and

(b)except to the extent specified in that notice.

(4)A notice under subsection (3) above shall be in such form as may be prescribed by the Board and shall be given before the end of the period of six months beginning with the date of the transfer of value.

(5)Section 27 above shall apply where the value transferred by a transfer of value is attributable to property which immediately after the transfer remains comprised in a settlement as it applies where property becomes comprised in a settlement by virtue of the transfer.

Notes

  1. F1

    Words in s. 57(2)(a) inserted (5.12.2005) by The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1(1), 15

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