Inheritance Tax Act 1984 section 49D

Transitional serial interest: interest to which person becomes entitled on death of spouse or civil partner on or after 6th October 2008

Section 49D sets out the conditions under which a surviving spouse or civil partner who inherits an interest in possession in a trust on the death of their spouse or civil partner on or after 6 October 2008 can qualify for a transitional serial interest, preserving the pre-22 March 2006 inheritance tax treatment of that interest.

• The trust must have been set up before 22 March 2006, and immediately before that date someone other than the surviving spouse or civil partner must have held an interest in possession in the settled property.
• That other person's interest must have ended on or after 6 October 2008 because of their death, and immediately before dying they must have been the spouse or civil partner of the person who inherits the interest.
• The surviving spouse or civil partner must have become entitled to the successor interest on the death of the original interest holder.
• The property must not be held on trusts for bereaved minors under section 71A, and the successor interest must not be a disabled person's interest.

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