Inheritance Tax Act 1984 section 49C

Transitional serial interest: interest to which person becomes entitled during period 22nd March 2006 to 5th October 2008

Section 49C defines what qualifies as a "transitional serial interest" in settled property, where a person acquires a new interest in possession during the transitional window between 22 March 2006 and 5 October 2008, replacing a pre-existing interest.

• The settlement must have been created before 22 March 2006, and immediately before that date someone (either the current beneficiary or another person) must have held an interest in possession in the settled property (the "prior interest").
• The prior interest must have come to an end at some point on or after 22 March 2006 but before 6 October 2008.
• The person claiming the transitional serial interest must have become beneficially entitled to their current interest at the exact time the prior interest ended.
• The settled property must not be held on trusts for bereaved minors, and the interest must not be a disabled person's interest.