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,”.
8.—(1) Schedule 1A to the Finance Act 2005(4) (meaning of “disabled person”) is amended as follows.
(2) In paragraph 1 (“disabled person”), after sub-paragraph (b), insert—
“(ba)a person in receipt of disability assistance for older people,”.
(3) After paragraph 2 (attendance allowance) insert—
2A. A person is to be treated as a disabled person under paragraph 1(ba) if they satisfy HMRC that they would be entitled to receive disability assistance for older people but for provision made by regulations under section 31 of the SS(S)A 2018 for—
(a)the cessation of entitlement to disability assistance for older people during periods when that person does not meet the conditions as to residence and presence prescribed by regulations made under that section, or
(b)the non-satisfaction of eligibility criteria for disability assistance for older people prescribed by regulations made under that section where a person is undergoing treatment for renal failure in hospital, or
(c)the reduction of the value of a payment of disability assistance for older people prescribed by regulations made under that section to £0 when a person is—
(i)resident in a care home,
(ii)undergoing detention in legal custody, or
(iii)in a hospital or similar institution.”.
(4) In paragraph 8 (interpretation), after the definition of “disability assistance for children and young people”, insert—
““disability assistance for older people” means a category of disability assistance specifically for older people,”.
9. In article 2(1) of the Armed Forces and Reserve Forces (Compensation Scheme) Order 2011(5) (interpretation), in the definition of “extra-costs disability benefit”, after “2022,”, insert “Pension Age Disability Payment given by virtue of the Disability Assistance for Older People (Scotland) Regulations 2024,”.
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.
2005 c. 7; Schedule 1A was added by paragraph 19 of Schedule 44 to the Finance Act 2013 (c. 29), and relevantly amended by section 291(2) of the Finance Act 2014 (c. 26).
S.I. 2011/517; relevant amending instruments are S.I. 2013/436 and 2021/804.