SCHEDULES
SCHEDULE 20

Inheritance tax: rules for trusts etc
Part 3

Related amendments in IHTA 1984

“Relevant property” to include property held on employee trusts or newspaper trusts if certain interests in possession subsist in the property
19
1
Section 58 of IHTA 1984 (meaning of “relevant property” in Chapter 3 of Part 3) is amended as follows.
2
In subsection (1)(b) (which provides that property to which section 86 applies is not relevant property), after “86 below applies” insert “ (but see subsection (1A) below) ”.
3
After subsection (1) insert—
1A
Settled property to which section 86 below applies is “relevant property” for the purposes of this Chapter if—
a
an interest in possession subsists in that property, and
b
that interest falls within subsection (1B) or (1C) below.
1B
An interest in possession falls within this subsection if—
a
an individual is beneficially entitled to the interest in possession,
b
the individual became beneficially entitled to the interest in possession on or after 22nd March 2006, and
c
the interest in possession is—
i
not an immediate post-death interest,
ii
not a disabled person's interest, and
iii
not a transitional serial interest.
1C
An interest in possession falls within this subsection if—
a
a company is beneficially entitled to the interest in possession,
b
the business of the company consists wholly or mainly in the acquisition of interests in settled property,
c
the company has acquired the interest in possession for full consideration in money or money's worth from an individual who was beneficially entitled to it,
d
the individual became beneficially entitled to the interest in possession on or after 22nd March 2006, and
e
immediately before the company acquired the interest in possession, the interest in possession was neither an immediate post-death interest nor a transitional serial interest.