Legislation – Finance Act 2026
Changes to legislation:
Finance Act 2026, Section 79 is up to date with all changes known to be in force on or before 18 April 2026. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
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Part 2Inheritance tax
Gifts to charities and registered clubs
79Section 78: transitional protection for existing interests in possession
(1)
Subsection (2) applies in relation to a transfer of value (“the original transfer”) to the extent that the value transferred by it is attributable to property which meets each of the following conditions, namely—
(a)
that immediately before the original transfer a person was beneficially entitled to an interest in possession in the property to which section 49(1) of IHTA 1984 (interests treated as part of estate) applied;
(b)
that the person became beneficially entitled to the interest in possession before 26 November 2025;
(c)
that by virtue of the original transfer the property is held on trust—
(i)
only for charitable purposes, or
(ii)
only for purposes of registered clubs,
but is not given to charities or registered clubs;
(d)
that the property is given to charities or registered clubs within the period of 2 years beginning with the date of the original transfer (“the subsequent gift”).
(2)
For the purposes of IHTA 1984—
(a)
the original transfer is treated as attributable (and as always having been attributable) to property given to charities or registered clubs, and
(b)
the subsequent gift is disregarded.
(3)
Subsections (1) and (2) have effect—
(a)
where the original transfer is made on a person’s death, if the person dies on or after 6 April 2026;
(b)
where the original transfer is made at any other time, if the transfer is made on or after 26 November 2025.
(4)
Subsections (1) to (3)are to be construed as though they were contained in section 23 of IHTA 1984.