1015. Disposal of an interest in possession.

Where a person beneficially entitled to an interest in possession in settled property disposes of his interest, the disposal is not a transfer of value, but it is treated1 as the coming to an end of his interest and inheritance tax is charged accordingly2.

Where the interest disposed of is one to which the person became beneficially entitled on or after 22 March 2006, this treatment3 applies only if the interest:

  1.  

    (1)     is an immediate post-death interest4;

  2.  

    (2)     is a disabled person's interest which is an interest in possession and not just deemed to be such5;

  3.  

    (3)     is a transitional