Section 55A Purchased settlement powersF1

(1)

Where a person makes a disposition by which he acquires a settlement power for consideration in money or money’s worth—

(a)

section 10(1) above shall not apply to the disposition;

(b)

the person shall be taken for the purposes of this Act to make a transfer of value;

(c)

the value transferred shall be determined without bringing into account the value of anything which the person acquires by the disposition; and

(d)

sections 18 and 23 to 27 above shall not apply in relation to that transfer of value.

(2)

For the purposes of this section, a person acquires a settlement power if he becomes entitled—

(a)

to a settlement power,

(b)

to exercise, or to secure or prevent the exercise of, a settlement power (whether directly or indirectly), or

(c)

to restrict, or secure a restriction on, the exercise of a settlement power (whether directly or indirectly),

as a result of transactions which include a disposition (whether to him or another) of a settlement power or of any power of a kind described in paragraph (b) or (c) above which is exercisable in relation to a settlement power.

Annotations

Textual amendments

F1: S. 55A inserted (24.7.2002 with effect as mentioned in s. 119(6) of the amending Act) by 2002 c. 23, s. 119(3)(6)

Notes on the whole Act

Textual amendments

F1: By Finance Act 1986 s. 100(1), on and after 25 July 1986 the Capital Transfer Tax Act 1984 may be cited as the Inheritance Tax Act 1984.

Notes on Chapter II

Textual amendments

F1: Words in the title of Chapter II substituted (24.7.2002 with effect in relation to transfers of value on or after 17.4.2002) by virtue of 2002 c. 23, s. 119(5)(6)