Section 80 Initial interest of settlor or spouse or civil partner.F7

United Kingdom

(1)

Where a settlor or his spouse F1or civil partner is beneficially entitled to F2a qualifying interest in possession in property immediately after it becomes comprised in the settlement, the property shall for the purposes of this Chapter F3(including sections 48 and 48ZA (excluded property) as they apply for the purposes of this Chapter) be treated as not having become comprised in the settlement on that occasion; but when the property or any part of it becomes held on trusts under which neither of those persons is beneficially entitled to a qualifying interest in possession , the property or part shall for those purposes be treated as becoming comprised in a separate settlement made by that one of them who ceased (or last ceased) to be beneficially entitled to a qualifying interest in possession in it.

(2)

References in subsection (1) above to the spouse F4or civil partner of a settlor include references to the widow or widower F5or surviving civil partner of a settlor.

(3)

This section shall not apply if the occasion first referred to in subsection (1) above occurred before 27th March 1974.

F6(4)

Where the occasion first referred to in subsection (1) above occurs on or after 22nd March 2006, this section applies—

(a)

as though for “ a qualifying interest in possession ” in each place where that appears in subsection (1) above there were substituted a postponing interest, and

(b)

as though, for the purposes of that subsection, each of the following were a “postponing interest”—

(i)

an immediate post-death interest;

(ii)

a disabled person's interest.

Annotations

Textual amendments

F1: Words in s. 80(1) inserted (5.12.2005) by The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1(1), 17(2)
F2: Words in s. 80 substituted (19.11.2015) by Finance (No. 2) Act 2015 (c. 33), s. 13(1)(2) (with s. 13(3)-(7))
F3: Words in s. 80(1) inserted (6.4.2025) by Finance Act 2025 (c. 8), Sch. 13 paras. 14, 45(1)
F4: Words in s. 80(2) inserted (5.12.2005) by The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1(1), 17(3)(a)
F5: Words in s. 80(2) inserted (5.12.2005) by The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1(1), 17(3)(b)
F6: S. 80(4) inserted (22.3.2006) by Finance Act 2006 (c. 25), s. 156, Sch. 20 paras. 7, 23
F7: Words in s. 80 sidenote inserted (5.12.2005) by virtue of The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1(1), 17(4)

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 III

Textual amendments

F1: Words in Pt. 3 Ch. 3 heading added (22.3.2006) by Finance Act 2006 (c. 25), s. 156, Sch. 20 para. 20(5)

Modifications

C1

See Finance Act 1990 s. 126—exemption for pools payments to trustees for football ground improvements in respect of events on or after 6April 1990.

C2

Pt. 3 Ch. 3 modified (22.7.2004) by Finance Act 2004 (c. 12), s. 283, Sch. 36 para. 57(1) (with s. 283(5))

C3

Pt. 3 Ch. 3 modified (22.7.2004) by Finance Act 2004 (c. 12), s. 283, Sch. 36 para. 56(2)(b) (with s. 283(5))

C4

Part III Chapter III (ss.58-85) excluded by Finance Act 1991 (c.31, SIF 63:1), s. 121(4).

Pt. III Ch. III (ss. 58-85) restricted (3.5.1994) by 1994 c. 9, s. 248