7.—(1) The Inheritance Tax Act 1984(1) is amended as follows.
(2) In section 74(4) (pre-1981 trusts for disabled persons), at the end of paragraph (c), insert— “, or
(d)is in receipt of pension age disability payment which is a category of disability assistance specifically for older people given in accordance with regulations made under section 31 of the Social Security (Scotland) Act 2018(2).”.
(3) In section 89A (self-settlement by person expected to fall within the definition of “disabled person”)(3)—
(a)in subsection (5)—
(i)omit the “and” at the end of paragraph (c);
(ii)at the end of paragraph (d), insert— “, and
(e)that there will be no provision made by regulations under section 31 of the SS(S)A 2018 for the non-satisfaction of eligibility criteria for pension age disability payment in respect of any period when A is undergoing treatment for renal failure in a hospital or similar institution otherwise than as an in-patient.”; and
(b)in subsection (8), after the definition of “disability assistance”, insert—
““pension age disability payment” means a category of disability assistance specifically for older people,”.
Section 89A was added by paragraph 6(1) of Schedule 20 to the Finance Act 2006 (c. 25), and relevantly amended by paragraph 7 of Schedule 44 to the Finance Act 2013 (c. 29) and article 2(2)(a) of S.I. 2021/886.