Introduction Details of the Section
2.Subsection 2 inserts a new section 58(1)(eb) to add property in a decommissioning security settlement as one of the categories of settled property in section 58(1) that is not to be regarded as relevant property. This has the effect of excluding such settlements from the IHT charges which would otherwise apply to relevant property.
3.Subsection 3 inserts new sections 58(6) and 58(7) into IHTA, which define the meaning of “decommissioning security settlement” and explain the meaning of certain terms used in these provisions respectively.
4.Subsection 5 provides necessary linkage to the Petroleum Tax Act 1987 so that the new exclusion in section 58(1) also applies to the equivalent of an approved abandonment programme under that Act.
5.Subsection 6 prevents the charge which would normally arise under section 65 IHTA when property ceases to be relevant property from applying if the only reason for that charge would be that the property in the decommissioning security settlement ceases to be relevant property as a result of the application of these new provisions.