http://www.legislation.gov.uk/ukpga/2020/14/section/73Finance Act 2020An Act to grant certain duties, to alter other duties, and to amend the law relating to the national debt and the public revenue, and to make further provision in connection with finance.texttext/xmlenStatute Law Database2026-04-15Expert Participation2026-03-18 PART 3 731IHTA 1984 is amended as follows.2In section 48 (excluded property)—ain subsection (3)(a), for “settlement was made” substitute “ property became comprised in the settlement (but see also subsection (3F)) ”,bin subsection (3A)(a), for “settlement was made” substitute “ property became comprised in the settlement (but see also subsection (3F)) ”,cin subsection (3E), for “settlement is made” substitute “ property became comprised in the settlement (but see also subsection (3F)) ”, anddafter subsection (3E) insert—3FIf—aan amount is payable in respect of property (“the existing property”) comprised in a settlement, andbthe amount represents an accumulation of income which (once accumulated) becomes comprised in the settlement,subsections (3)(a), (3A)(a) and (3E) have effect, in the case of the amount, as if any reference to the time it became comprised in the settlement were to the time the existing property became comprised in the settlement.3After section 48 insert—48AIn this Act any reference to the commencement of a settlement is to the time when property first becomes comprised in it.4Omit section 60 (meaning of commencement of settlement for purposes of Chapter).5In section 64 (charge at ten-year anniversary)—ain subsection (1B)—iafter “settlor of” insert “ property comprised in ”,iifor “settlement was made” substitute “ property became comprised in the settlement (but see also subsection (1BA)) ”, andiiiafter “income of the settlement” insert “ that arose (directly or indirectly) from the property ”, andbafter that subsection insert—1BAIf—aan amount is payable in respect of property (“the existing property”) comprised in a settlement, andbthe amount represents an accumulation of income which (once accumulated) becomes comprised in the settlement,subsection (1B) has effect, in the case of the amount, as if any reference to the time it became comprised in the settlement were to the time the existing property became comprised in the settlement.6In section 65 (charge at other times)—ain subsection (7A), for “settlement made” substitute “ property became comprised in settlement ”,bin subsection (8)—iafter “settlor of” insert “ property comprised in ”,iifor “settlement was made” substitute “ property became comprised in the settlement (but see also subsection (8A)) ”, andiiifor “property comprised in the settlement” substitute “ the property ”, andcafter that subsection insert—8AIf—aan amount is payable in respect of property (“the existing property”) comprised in a settlement, andbthe amount represents an accumulation of income which (once accumulated) becomes comprised in the settlement,subsection (8) has effect, in the case of the amount, as if any reference to the time it became comprised in the settlement were to the time the existing property became comprised in the settlement.7In section 74A (arrangements involving acquisition of interest in settled property etc)—ain subsection (2)(a), for “settlement was made” substitute “ relevant settled property became comprised in the settlement ”, andbin subsection (3)(a), for “settlement was made” substitute “ relevant settled property became comprised in the settlement ”.8In section 157(3) (non-residents' bank accounts), for “he made” substitute “ the settled property became comprised in ”.9In section 237(1)(b) (imposition of charge), for “the chargeable transfer is made by the making of a settlement or” substitute “ property becomes comprised in a settlement by virtue of the chargeable transfer or the chargeable transfer ”.10In section 272 (general interpretation)—abefore the definition of “conditionally exempt transfer” insert—“commencement” of a settlement has the meaning given by section 48A;, andbin the definition of “foreign-owned”, in paragraph (b)(ii), at the end insert “ (and section 64(1BA) applies for the purposes of this sub-paragraph as it applies for the purposes of section 64(1B)) ”.11In relation to any chargeable transfer made on or after the day on which this Act is passed, the amendments made by this section are treated as always having been in force.Section 2(3) of IHTA 1984 applies for the purposes of this subsection.