Section 29 Contingencies affecting gifts or inheritances
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(1) Where, under a disposition, a person becomes beneficially entitled in possession to any benefit and, under the terms of the disposition, the entitlement, or any part of the entitlement, may cease on the happening of a contingency (other than the revocation of the entitlement on the exercise by the disponer of such a power as is referred to in section 39), the taxable value of any taxable gift or taxable inheritance taken by that person on becoming so entitled to that benefit is ascertained as if no part of the entitlement were so to cease; but, in the event and to the extent that the entitlement so ceases, the tax payable by that person is, to that extent, adjusted (if, by so doing, a lesser amount of tax would be payable by such person) on the basis that such person had taken an interest in possession for a period certain which was equal to the actual duration of such person's beneficial entitlement in possession.
If I take a benefit subject to a contingency, how is it treated?
(1) Where you take a benefit subject to a contingency (i.e., a benefit which may cease on the happening of a contingency, or by the disponer exercising power of revocation), the contingency is ignored. In other words, you are treated as if you had re...
(1A) Notwithstanding section 57(3), relief shall be given under subsection (1) on a claim which shall be made within 4 years after the entitlement referred to in that subsection ceases.
Amendments
Subs (1A) inserted by Finance Act 2008 section 137 and Schedule 6 para 2(b) on and from 31 January 2008.
(2) Nothing in this section shall prejudice any charge for tax on the taking by such person of a substituted gift or inheritance on the happening of such a contingency.
