Textual Amendments
F1Words in Pt. 3 Ch. 3 heading added (22.3.2006) by Finance Act 2006 (c. 25), s. 156, Sch. 20 para. 20(5)
Modifications etc. (not altering text)
C1 See Finance Act 1990 s. 126—exemption for pools payments to trustees for football ground improvements in respect of events on or after 6April 1990.
C2Pt. 3 Ch. 3 modified (22.7.2004) by Finance Act 2004 (c. 12), s. 283, Sch. 36 para. 57(1) (with s. 283(5))
C3Pt. 3 Ch. 3 modified (22.7.2004) by Finance Act 2004 (c. 12), s. 283, Sch. 36 para. 56(2)(b) (with s. 283(5))
C4Part III Chapter III (ss.58-85) excluded by Finance Act 1991 (c.31, SIF 63:1), s. 121(4).
Pt. III Ch. III (ss. 58-85) restricted (3.5.1994) by 1994 c. 9, s. 248
(1)Where a settlor or his spouse [F3or civil partner] is beneficially entitled to [F4a qualifying interest in possession] in property immediately after it becomes comprised in the settlement, the property shall for the purposes of this Chapter be treated as not having become comprised in the settlement on that occasion; but when the property or any part of it becomes held on trusts under which neither of those persons is beneficially entitled to [F4a qualifying interest in possession], the property or part shall for those purposes be treated as becoming comprised in a separate settlement made by that one of them who ceased (or last ceased) to be beneficially entitled to [F4a qualifying interest in possession] in it.
(2)References in subsection (1) above to the spouse [F5or civil partner] of a settlor include references to the widow or widower [F6or surviving civil partner] of a settlor.
(3)This section shall not apply if the occasion first referred to in subsection (1) above occurred before 27th March 1974.
[F7(4)Where the occasion first referred to in subsection (1) above occurs on or after 22nd March 2006, this section applies—
(a)as though for “[F4a qualifying interest in possession]” in each place where that appears in subsection (1) above there were substituted a postponing interest, and
(b)as though, for the purposes of that subsection, each of the following were a “postponing interest”—
(i)an immediate post-death interest;
(ii)a disabled person's interest.]
Textual Amendments
F2Words in s. 80 sidenote inserted (5.12.2005) by virtue of The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1(1), 17(4)
F3Words in s. 80(1) inserted (5.12.2005) by The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1(1), 17(2)
F4Words in s. 80 substituted (19.11.2015) by Finance (No. 2) Act 2015 (c. 33), s. 13(1)(2) (with s. 13(3)-(7))
F5Words in s. 80(2) inserted (5.12.2005) by The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1(1), 17(3)(a)
F6Words in s. 80(2) inserted (5.12.2005) by The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1(1), 17(3)(b)
F7S. 80(4) inserted (22.3.2006) by Finance Act 2006 (c. 25), s. 156, Sch. 20 paras. 7, 23
(1)Where property which ceases to be comprised in one settlement becomes comprised in another then, unless in the meantime any person becomes beneficially entitled to the property (and not merely to an interest in possession in the property), it shall for the purposes of this Chapter be treated as remaining comprised in the first settlement.
(2)Subsection (1) above shall not apply where the property ceased to be comprised in the first settlement before 10th December 1981; but where property ceased to be comprised in one settlement before 10th December 1981 and after 26th March 1974 and, by the same disposition, became comprised in another settlement, it shall for the purposes of this Chapter be treated as remaining comprised in the first settlement.
(3)Subsection (1) above shall not apply where a reversionary interest in the property expectant on the termination of a qualifying interest in possession subsisting under the first settlement was settled on the trusts of the other settlement before 10th December 1981.
(1)Where a reversionary interest in relevant property to which—
(a)a person who acquired it for a consideration in money or money's worth, or
(b)the settlor or the spouse or civil partner of the settlor,
(a “relevant reversioner”) is beneficially entitled comes to an end by reason of the relevant reversioner becoming entitled to an interest in possession in the relevant property, the relevant reversioner is to be treated as having made a disposition of the reversionary interest at that time.
(2)A transfer of value of a reversionary interest in relevant property to which a relevant reversioner is beneficially entitled is to be taken to be a transfer which is not a potentially exempt transfer.]
Textual Amendments
F8S. 81A inserted (with effect as mentioned in s. 52(2) of the amending Act) by Finance Act 2010 (c. 13), s. 52(1)
(1)For the purposes of this Chapter (except sections 78 and 79) property to which section 80 or 81 above applies shall not be taken to be excluded property by virtue of section 48(3)(a) above unless the condition in subsection (3) below is satisfied (in addition to the conditions in section 48(3) that the property is situated outside the United Kingdom and that the settlor was not domiciled there when the settlement was made).
(2)Section 65(8) above shall not have effect in relation to property to which section 80 or 81 applies unless the condition in subsection (3) below is satisfied (in addition to the condition in section 65(8) that the settlor was not domiciled in the United Kingdom when the settlement was made).
(3)The condition referred to in subsections (1) and (2) above is—
(a)in the case of property to which section 80 above applies, that the person who is the settlor in relation to the settlement first mentioned in that section, and
(b)in the case of property to which subsection (1) or (2) of section 81 above applies, that the person who is the settlor in relation to the second of the settlements mentioned in the subsection concerned,
was not domiciled in the United Kingdom when that settlement was made.
Property which becomes comprised in a settlement in pursuance of a will or intestacy shall for the purposes of this Chapter be taken to have become comprised in it on the death of the testator or intestate (whether it occurred before or after the passing of this Act).
For the purposes of this Chapter (except sections 78 and 79) where the trusts on which settled property is held require part of the income of the property to be applied for charitable purposes, a corresponding part of the settled property shall be regarded as held for charitable purposes.
Any tax charged under paragraph 12(2) of Schedule 5 to the M1Finance Act 1975 and not already allowed as a credit under paragraph 12(3) of that Schedule or under section 125 of the M2Finance Act 1982 or under this section shall be allowed as a credit against tax chargeable under this Chapter (apart from section 79) in respect of the settled property or part concerned.