Section 80 — Inheritance Tax Act 1984: Initial interest of settlor or spouse or civil partner .

Initial interest of settlor or spouse or civil partner . 80 1 Where a settlor or his spouse or civil partner is beneficially entitled to a qualifying interest in possession in property immediately after it becomes comprised in the settlement, the property shall for the purposes of this Chapter (including sections 48 and 48ZA (excluded property) as they apply for the purposes of this Chapter) be treated as not having become comprised in the settlement on that occasion; but when the property or any part of it becomes held on trusts under which neither of those persons is beneficially entitled to a qualifying interest in possession , the property or part shall for those purposes be treated as becoming comprised in a separate settlement made by that one of them who ceased (or last ceased) to be beneficially entitled to a qualifying interest in possession in it.

2 References in subsection (1) above to the spouse or civil partner of a settlor include references to the widow or widower or surviving civil partner of a settlor.

3 This section shall not apply if the occasion first referred to in subsection (1) above occurred before 27th March 1974.

4 Where the occasion first referred to in subsection (1) above occurs on or after 22nd March 2006, this section applies—

a as though for “ a qualifying interest in possession ” in each place where that appears in subsection (1) above there were substituted a postponing interest, and b as though, for the purposes of that subsection, each of the following were a “postponing interest”—

i an immediate post-death interest;

ii a disabled person's interest.