Paragraph 31 FA 1986

Section 102 of FA 1986 (gifts with reservation) is amended as follows.

In subsection (1), for “(5) and (6)” substitute “(5), (6) and (7A)”.

After subsection (7) insert—

“(7A)

This section does not apply if—

(a)

the disposal of property by way of gift took place before 30 October 2024,

(b)

the property became settled property by virtue of the disposal and remained settled property at all times after the disposal and before the relevant time,

(c)

immediately before 30 October 2024, the property was excluded property for the purposes of the 1984 Act by virtue of section 48(3) or (3A) (as it had effect at that time), and

(d)

immediately before the relevant time, the property—

(i)

was situated outside the United Kingdom and was not property to which paragraph 2 or 3 of Schedule A1 to the 1984 Act applied (overseas property with value attributable to UK residential property), or

(ii)

was a holding in an authorised unit trust or a share in an open-ended investment company (within the meaning, in either case, of the 1984 Act).

(7B)

In subsection (7A), “the relevant time” means—

(a)

if the property ceases to meet the condition in subsection (2) at any time before the donor’s death, that time;

(b)

otherwise, the time of the donor’s death.

(7C)

In subsection (7A)(c), “for the purposes of the 1984 Act” includes for the purposes only of Chapter 3 of Part 3 of that Act (ten-year anniversary charges etc) because of the operation of section 81 of that Act (property moving between settlements).”