Inheritance Tax Act 1984 section 49B

Transitional serial interests

Section 49B defines the concept of a "transitional serial interest" in settled property for inheritance tax purposes and directs readers to the specific sections that set out when such an interest arises.

• A transitional serial interest is a particular type of interest in possession in settled property that receives special inheritance tax treatment, broadly being taxed as if it were a pre-22 March 2006 interest.
• An interest in possession only qualifies as a transitional serial interest if it falls within the rules set out in section 49C, section 49D, or section 49E.
• Sections 49C and 49D each provide that an interest either is or is not a transitional serial interest, whereas section 49E can apply partially, so that an interest may be a transitional serial interest only to a certain extent.
• This section acts as a gateway provision; it does not itself create any qualifying conditions but instead directs the reader to the three sections that contain the detailed rules.