Section 79 | Section 78: transitional protection for existing interests in possession

(1)Subsection (2) applies in relation to a transfer of value (“the original transfer”) to the extent that the value transferred by it is attributable to property which meets each of the following conditions, namely—

(a)that immediately before the original transfer a person was beneficially entitled to an interest in possession in the property to which section 49(1) of IHTA 1984 (interests treated as part of estate) applied;

(b)that the person became beneficially entitled to the interest in possession before 26 November 2025;

(c)that by virtue of the original transfer the property is held on trust—

(i)only for charitable purposes, or

(ii)only for purposes of registered clubs,

but is not given to charities or registered clubs;

(d)that the property is given to charities or registered clubs within the period of 2 years beginning with the date of the original transfer (“the subsequent gift”).

(2)For the purposes of IHTA 1984—

(a)the original transfer is treated as attributable (and as always having been attributable) to property given to charities or registered clubs, and

(b)the subsequent gift is disregarded.

(3)Subsections (1) and (2) have effect—

(a)where the original transfer is made on a person’s death, if the person dies on or after 6 April 2026;

(b)where the original transfer is made at any other time, if the transfer is made on or after 26 November 2025.

(4)Subsections (1) to (3)are to be construed as though they were contained in section 23 of IHTA 1984.