Inheritance Tax Act 1984 section 93

Disclaimers

Section 93 deals with the inheritance tax treatment of a person who becomes entitled to an interest in settled property but disclaims (renounces) that interest, provided the disclaimer is not made in return for monetary consideration.

• Where a person disclaims an interest in settled property without receiving money or money's worth in return, the Act treats them as if they had never become entitled to that interest.
• The section applies to interests arising under lifetime settlements, wills, or intestacies, and there is no time limit within which the disclaimer must be made.
• A disclaimer does not need to be in writing — it can be made orally to the trustees or even by conduct — but it cannot be made once any benefit under the interest has been accepted.
• Where an interest in possession has vested, the beneficiary can still validly disclaim provided they have not yet accepted any benefit from it.