Section 74 Transfers between settlements etc

(1)     IHTA 1984 is amended as follows.

(2)     After section 81A insert—

“81B Excluded property: property to which section 80 applies

(1)     This section applies to property to which section 80 (initial interest of settlor etc) applies.

(2)     If the property would apart from this section be excluded property by virtue of section 48(3)(a) or (3A)(a), the property is at any time in a tax year to be regarded as excluded property for the purposes of this Chapter, except sections 78 and 79, only if Conditions A and B are met.

(3)     Section 65(8) has effect in relation to the property only if Condition A is met (in addition to any condition mentioned in that provision).

(4)     Condition A is that the actual settlor was not domiciled in the United Kingdom at the time of the occasion first referred to in section 80(1).

(5)     Condition B is that the actual settlor is not a formerly domiciled resident for the tax year.

(6)     In this section “the actual settlor” means the person who is the settlor of the property in relation to the settlement first mentioned in section 80(1).

(7)     Where the occasion first referred