Article 7 Amendment of the Inheritance Tax Act 1984

(1)

The Inheritance Tax Act 1984^f1 is amended as follows.

(2)

In section 74(4) (pre-1981 trusts for disabled persons), at the end of paragraph (d), insert—

“, or

(e)

is in receipt of Scottish adult disability living allowance, which is a category of disability assistance specifically for adults which takes the form of a living allowance given in accordance with regulations made under section 31 of the Social Security (Scotland) Act 2018^f2 by virtue of entitlement to the care component at the highest or middle rate.”.

(3)

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

(a)

in subsection (5)(e), after “pension age disability payment”, insert “or Scottish adult disability living allowance”; and

(b)

in subsection (8), after the definition of “pension age disability payment”, insert—

““Scottish adult disability living allowance” means a category of disability assistance specifically for adults which takes the form of a living allowance,”.

Annotations

Footnotes

f1: 1984 c. 51; section 74(4) was relevantly amended by S.I. 2024/1048. 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), S.I. 2021/886 and S.I. 2024/1048.
f2: 2018 asp 9.