12U.K.In section 51 of IHTA 1984 (disposal of interest in possession not a transfer of value, but treated as coming to end of interest), after subsection (1) insert—
“(1A)Where the interest disposed of is one to which the person became beneficially entitled on or after 22nd March 2006, subsection (1) above applies in relation to the disposal only if the interest is—
(a)an immediate post-death interest,
(b)a disabled person's interest within section 89B(1)(c) or (d) below, or
(c)a transitional serial interest.
(1B)Where the interest disposed of is one to which the person became beneficially entitled before 22nd March 2006, subsection (1) above does not apply in relation to the disposal if, immediately before the disposal, section 71A or 71D below applies to the property in which the interest subsists.”
13(1)Section 52 of IHTA 1984 (tax on termination of interest in possession) is amended as follows.U.K.
(2)After subsection (2) insert—
“(2A)Where the interest mentioned in subsection (1) or (2) above is one to which the person became beneficially entitled on or after 22nd March 2006, that subsection applies in relation to the coming to an end of the interest only if the interest is—
(a)an immediate post-death interest,
(b)a disabled person's interest, or
(c)a transitional serial interest.”
(3)After subsection (3) insert—
“(3A)Where the interest mentioned in paragraph (a) of subsection (3) above is one to which the person mentioned in that paragraph became beneficially entitled on or after 22nd March 2006, that subsection applies in relation to the transaction only if the interest is—
(a)an immediate post-death interest,
(b)a disabled person's interest, or
(c)a transitional serial interest.”
14(1)Section 53 of IHTA 1984 (exceptions from tax charge under section 52) is amended as follows.U.K.
(2)After subsection (1) insert—
“(1A)Tax shall not be chargeable under section 52 above if—
(a)the person whose interest comes to an end became beneficially entitled to the interest before 22nd March 2006,
(b)the interest comes to an end on or after that day, and
(c)immediately before the interest comes to an end, section 71A or 71D below applies to the property in which the interest subsists.”
(3)After subsection (2) insert—
“(2A)Where—
(a)a person becomes beneficially entitled on or after 22nd March 2006 to an interest in possession in settled property, and
(b)the interest is not a disabled person's interest,
subsection (2) above applies in relation to the coming to an end of the interest with the omission of the words “or to another interest in possession in the property”.”