1041. Purchased settlement powers.

Where a person makes a disposition1 by which he acquires a settlement power2 for consideration in money or money's worth:


    (1)     the disposition is not treated3 as a disposition not intended to confer a gratuitous benefit4;


    (2)     the person is taken for the purposes of the Inheritance Tax Act 1984 to make a transfer of value5;


    (3)     the value transferred is determined without bringing into account the value of anything which the person acquires by the disposition