96 Interests in possession.U.K.
(1)With respect to transfers of value made, and other events occurring, on or after 17th March 1987, the M1Inheritance Tax Act 1984 shall be amended in accordance with this section.
(2)In section 3A (potentially exempt transfers)—
(a)in subsection (2)(a) the words “otherwise than as settled property” shall be omitted;
(b)in subsection (2)(b) the words from “otherwise” onwards shall be omitted; and
F1(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3)At the end of section 3A there shall be added the following subsection—
“(7)In the application of this section to an event on the happening of which tax is chargeable under section 52 below, the reference in subsection (1)(a) above to the individual by whom the transfer of value is made is a reference to the person who, by virtue of section 3(4) above, is treated as the transferor.”
(4)In section 49 (treatment of interests in possession) subsection (3) (which was added by paragraph 14 of Schedule 19 to the M2Finance Act 1986) shall be omitted.
(5)In section 55 (reversionary interest acquired by beneficiary) in subsection (2) the words “and such a disposition is not a potentially exempt transfer” (being words added by paragraph 15 of the said Schedule 19) shall be omitted.
(6)Schedule 7 to this Act shall have effect for the purpose of making further amendments of the M3Inheritance Tax Act 1984 relating to interests in possession in settled property.
Textual Amendments
F1S. 96(2)(c) omitted (with effect in accordance with s. 53(10) of the amending Act) by virtue of Finance Act 2010 (c. 13), s. 53(9)
Marginal Citations