# Inheritance Tax Act 1984, Section 55A: Purchased settlement powers


(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.

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Source: https://www.legislation.gov.uk/ukpga/1984/51/section/55A (the official version)
Page: https://openlegislation.uk/inheritance-tax-act-1984/section-55A
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.