The FA80/S93 brought proper liferents into line with the settled
property regime of the FA75/SCH5 by extending the definition of
“reversionary interest” in IHTA84/S51 (1) to include in
Scotland “an interest in the fee of property subject to a
proper liferent” and by adding at the end of FA75/SCH5 Para 1
(4) a subparagraph (c) so that in Scotland “settlement”
included any deed creating or reserving a proper liferent of any
property whether heritable or moveable, the property subject to the
liferent being treated as the property comprised in the settlement.
Subpara 1(9) of SCH5 was extended to include the interest of an
assignee under an assignation of an interest of any kind (other
than a reversionary interest) in the property subject to a proper
liferent.
A provision was added by subsection (3) to the FA78/S68 (4)
so that in its application to Scotland property subject to a proper
liferent was deemed to be held in trust for the liferenter.
The provisions of the FA80 apply to any transfer of value
made after 17 April 1980 or where payment of tax has not been made
and accepted in full satisfaction of the liability, to any transfer
of value made on or before that date if the person liable for the
tax on the transfer so elects.
For IHT purposes the proper liferent legislation is now found
at IHTA84/S43 (4), IHTA84/S46 and IHTA84/S47.
