1018. Special rate of charge where settled property affected by potentially exempt transfer.

The following provisions apply to any chargeable transfer made:


    (1)     on the coming to an end of an interest in possession in settled property (the relevant interest) during the life of the person beneficially entitled to it1; or


    (2)     on the death of a person beneficially entitled to an interest in possession in settled property2,

providing certain circumstances exist3.

The circumstances referred to are:


    (a)     that the whole or part of the value transferred by the transfer is attributable to property in which the relevant interest subsisted and which became settled property in which there subsisted an interest in possession (whether