- Latest available (Revised)
- Original (As enacted)
There are currently no known outstanding effects for the Inheritance Tax Act 1984, Section 89.
Revised legislation carried on this site may not be fully up to date. At the current time any known changes or effects made by subsequent legislation have been applied to the text of the legislation you are viewing by the editorial team. Please see ‘Frequently Asked Questions’ for details regarding the timescales for which new effects are identified and recorded on this site.
(1)This section applies to settled property transferred into settlement after 9th March 1981 and held on trusts—
(a)under which, during the life of a disabled person, no interest in possession in the settled property subsists, and
[F1(b)which secure that, if any of the settled property or income arising from it is applied during the disabled person's life for the benefit of a beneficiary, it is applied for the benefit of the disabled person.]
(2)For the purposes of this Act the person mentioned in subsection (1) above shall be treated as beneficially entitled to an interest in possession in the settled property.
[F2(3)The trusts on which the settled property is held are not to be treated as falling outside subsection (1) by reason only of—
(a)the trustees' having powers that enable them to apply otherwise than for the benefit of the disabled person amounts (whether consisting of income or capital, or both) not exceeding the annual limit,
(b)the trustees' having the powers conferred by section 32 of the Trustee Act 1925 (powers of advancement),
(c)the trustees' having those powers but free from, or subject to a less restrictive limitation than, the limitation imposed by proviso (a) of subsection (1) of that section,
(d)the trustees' having the powers conferred by section 33 of the Trustee Act (Northern Ireland) 1958 (corresponding provision for Northern Ireland),
(e)the trustees' having those powers but free from, or subject to a less restrictive limitation than, the limitation imposed by subsection (1)(a) of that section, or
(f)the trustees' having powers to the like effect as the powers mentioned in any of paragraphs (b) to (e).
(3A)For the purposes of this section, the “annual limit” is whichever is the lower of the following amounts—
(a)£3,000, and
(b)3% of the amount that is the maximum value of the settled property during the period in question.
(3B)For those purposes the annual limit applies in relation to each period of 12 months that begins on 6 April.
(3C)The Treasury may by order made by statutory instrument—
(a)specify circumstances in which subsection (3)(a) is, or is not, to apply in relation to a trust, and
(b)amend the definition of “the annual limit” in subsection (3A).
(3D)An order under subsection (3C) may—
(a)make different provision for different cases, and
(b)contain transitional and saving provision.
(3E)A statutory instrument containing an order under subsection (3C) may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, the House of Commons.]
(4)The reference in subsection (1) above to a disabled person is, in relation to any settled property, a reference to a person who, when the property was transferred into settlement, [F3was a disabled person].
[F4(4A)In this section “disabled person” has the meaning given by Schedule 1A to the Finance Act 2005.]
Textual Amendments
F1S. 89(1)(b) substituted (with effect in accordance with Sch. 44 para. 9 of the amending Act) by Finance Act 2013 (c. 29), Sch. 44 para. 6(2) (with Sch. 44 para. 9(2))
F2S. 89(3)-(3E) substituted for s. 89(3) (with effect in accordance with Sch. 44 para. 9 of the amending Act) by Finance Act 2013 (c. 29), Sch. 44 para. 6(3) (with Sch. 44 para. 9(2))
F3Words in s. 89(4) substituted (with effect in accordance with Sch. 44 para. 9 of the amending Act) by Finance Act 2013 (c. 29), Sch. 44 para. 6(4)
F4S. 89(4A) substituted for s. 89(5)(6) (with effect in accordance with Sch. 44 para. 9 of the amending Act) by Finance Act 2013 (c. 29), Sch. 44 para. 6(5)
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act you have selected contains over 200 provisions and might take some time to download.
Would you like to continue?
The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download.
Would you like to continue?
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.
Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.
Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.
Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.
Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:
This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.
Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:
Click 'View More' or select 'More Resources' tab for additional information including: