# Finance Act 2006, Paragraph 15


(1) Section 54 of IHTA 1984 (exceptions from charge on death) is amended as follows.
(2) After subsection (2) insert—
“(2A) Where a person becomes beneficially entitled on or after 22nd March 2006 to an interest in possession in settled property, subsections (1) and (2) above apply in relation to the interest only if it is—
(a) a disabled person's interest, or
(b) a transitional serial interest.
(2B) Where—
(a) a person (“B”) becomes beneficially entitled on or after 22nd March 2006 to an interest in possession in settled property,
(b) B dies,
(c) the interest in possession, throughout the period beginning with when B becomes beneficially entitled to it and ending with B's death, is an immediate post-death interest,
(d) the settlor died before B's death but less than two years earlier, and
(e) on B's death, the settlor's widow or widower, or surviving civil partner, becomes beneficially entitled to the settled property and is domiciled in the United Kingdom,
the value of the settled property shall be left out of account in determining for the purposes of this Act the value of B's estate immediately before his death.”
(3) In subsection (3) (section 53(5) and (6) apply in relation to subsections (1) and (2))—
(a) for “(1) and (2)” substitute “ (1), (2) and (2B) ”, and
(b) at the end add “ , but as if the reference in section 53(5)(a) above to section 53(4)(b) above were to subsection (2)(b) or (2B) above. ”

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Source: https://www.legislation.gov.uk/ukpga/2006/25/schedule/20/paragraph/15 (the official version)
Page: https://openlegislation.uk/finance-act-2006/schedule-20/paragraph-15
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.