Inheritance Tax Act 1984 section 51

Disposal of interest in possession

Section 51 deals with what happens for inheritance tax purposes when a person who holds an interest in possession in settled property disposes of that interest, including the conditions under which the disposal is treated as the ending of the interest rather than a transfer of value.

• Disposing of an interest in possession is not a transfer of value but is treated as the ending of that interest, triggering a charge under section 52
• For interests acquired on or after 22 March 2006, this treatment only applies to immediate post-death interests, disabled persons' interests, and transitional serial interests
• For interests acquired before 22 March 2006, this treatment does not apply where the settled property is subject to trusts for bereaved minors or age 18-to-25 trusts
• Dispositions that qualify as family maintenance dispositions under section 11 are excluded — the interest is not treated as coming to an end