PART 2Disability assistance: England and Wales, Scotland and Northern Ireland

Disability assistance: amendments relating to taxation excluding taxation as regards motor vehicles

Amendment of the Inheritance Tax Act 19842

1

The Inheritance Tax Act 19842 is amended as follows.

2

In section 89A (self-settlement by person expected to fall within the definition of “disabled person”)3—

a

in subsection (5)—

i

in paragraph (a), after “allowance,” insert “disability assistance,”,

ii

at the end of paragraph (b), omit “and”,

iii

at the end of paragraph (c), omit the full stop and insert—

, and

d

that there will be no provision made by regulations under section 31 of the SS(S)A 2018 for the reduction of the value of a payment of disability assistance to £0 when the person is—

i

resident in a care home,

ii

resident in an educational establishment,

iii

undergoing medical or other treatment as an in-patient in a hospital or similar institution, or

iv

undergoing imprisonment or detention in legal custody.

b

in subsection (8)—

i

before the definition of “SSCBA 1992”, insert—

  • “disability assistance” means disability assistance given in accordance with regulations made under section 31 of the SS(S)A 2018,

ii

at the end of the definition of “SSCB(NI)A 1992”, omit “and”,

iii

after that definition insert—

  • “SS(S)A 2018” means the Social Security (Scotland) Act 20184, and