Inheritance Tax Act 1984 section 80

Initial interest of settlor or spouse or civil partner

Section 80 deals with the inheritance tax treatment of settled property where the settlor or their spouse or civil partner initially holds a qualifying interest in possession in the property, and what happens when that interest comes to an end.

• Where the settlor or their spouse or civil partner has a qualifying interest in possession immediately after property enters a settlement, the property is treated as not having become comprised in the settlement at that point
• When neither the settlor nor their spouse or civil partner any longer holds a qualifying interest in possession, the property is treated as becoming part of a separate settlement made by whichever of them last held such an interest
• The section only applies to settlements where the property first became comprised in the settlement on or after 27 March 1974
• For events occurring on or after 22 March 2006, the section applies only where the interest is a "postponing interest", which means either an immediate post-death interest or a disabled person's interest