{
  "url": "https://openlegislation.uk/inheritance-tax-act-1984/section-46A",
  "json_url": "https://openlegislation.uk/inheritance-tax-act-1984/section-46A.json",
  "legislation": "ukpga/1984/51",
  "legislation_title": "Inheritance Tax Act 1984",
  "legislation_url": "https://openlegislation.uk/inheritance-tax-act-1984",
  "path": "section/46A",
  "kind": "section",
  "number": "46A",
  "heading": "Contract of life insurance entered into before 22nd March 2006 which on that day is settled property in which interest in possession subsists",
  "text": "(1) Subsections (2) and (4) below apply where—\n(a) a settlement commenced before 22nd March 2006,\n(b) a contract of life insurance was entered into before that day,\n(c) a premium payable under the contract is paid, or an allowed variation is made to the contract, at a particular time on or after that day,\n(d) immediately before that day, and at all subsequent times up to the particular time, there were rights under the contract that—\n(i) were comprised in the settlement, and\n(ii) were settled property in which a transitionally-protected interest (whether or not the same such interest throughout that period) subsisted,\n(e) rights under the contract become, by reference to payment of the premium or as a result of the variation,—\n(i) comprised in the settlement, and\n(ii) part of the settled property in which the then-current transitionally-protected interest subsists, and\n(f) any variation of the contract on or after 22nd March 2006 but before the particular time, so far as it is a variation that—\n(i) increased the benefits secured by the contract, or\n(ii) extended the term of the insurance provided by the contract,\nwas an allowed variation.\n(2) For the purposes of the provisions mentioned in subsection (3) below—\n(a) the rights mentioned in subsection (1)(e) above shall be taken to have become comprised in the settlement, and\n(b) the person beneficially entitled to the then-current transitionally-protected interest shall be taken to have become beneficially entitled to his interest in possession so far as it subsists in those rights,\nbefore 22nd March 2006.\n(3) Those provisions are—\nsection 3A(2) above;\nsection 5(1A) above;\nsection 49(1A) and (1B) below;\nsection 51(1A) and (1B) below;\nsection 52(2A) and (3A) below;\nsection 53(1A) and (2A) below;\nsection 54(2A) and (2B) below;\nsection 54A(1A) below;\nsection 57A(1A) below;\nsection 58(1B) and (1C) below;\nsection 59(1) and (2) below;\nsection 80(4) below;\nsection 100(1A) below;\nsection 101(1A) below;\nsection 102ZA(1) of the Finance Act 1986 (gifts with reservation); and\nsections 72(1A) and (2A) and 73(2A) of the 1992 Act.\n(4) If payment of the premium is a transfer of value made by an individual, that transfer of value is a potentially exempt transfer.\n(5) In this section—\n“allowed variation”, in relation to a contract, means a variation that takes place by operation of, or as a result of exercise of rights conferred by, provisions forming part of the contract immediately before 22nd March 2006;\n“transitionally-protected interest” means—\n(a)an interest in possession to which a person was beneficially entitled immediately before, and on, 22nd March 2006, or\n(b)a transitional serial interest.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Ss. 46A, 46B inserted (22.3.2006) by Finance Act 2006 (c. 25), s. 156, Sch. 20 paras. 7, 11(1)(2)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/1984/51/section/46A",
    "retrieved_at": "2026-10-29T10:01:12.914001+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}