Amendments made: No. 70, page 384, line 38, at end insert—

'(2) For the purposes of sections 71A to 71G above, a deceased individual ("D") shall be taken to have been a parent of another individual ("Y") if, immediately before D died, D had—

(a) parental responsibility for Y under the law of England and Wales,

(b) parental responsibilities in relation to Y under the law of Scotland, or

(c) parental responsibility for Y under the law of Northern Ireland.

(3) In subsection (2)(a) above "parental responsibility" has the same meaning as in the Children Act 1989.

(4) In subsection (2)(b) above "parental responsibilities" has the meaning given by section 1(3) of the Children (Scotland) Act 1995.

(5) In subsection (2)(c) above "parental responsibility" has the same meaning as in the Children (Northern Ireland) Order 1995.".'.

No. 71, page 386, line 29, leave out '("B")'.

No. 72, page 386, line 30, leave out '("the current interest")'.

No. 73, page 386, line 33, leave out

'the following conditions are met'

and insert

'section 49BA or 49BB below so provides'.

No. 74, page 386, line 34, at end insert—

'49BA Transitional serial interest: interest to which person becomes entitled during period 22nd March 2006 to 5th April 2008

(1) Where a person ("B") is beneficially entitled to an interest in possession in settled property ("the current interest"), that interest is a transitional serial interest for the purposes of this Chapter if the following conditions are met.'.

No. 75, page 387, line 6, at end insert—

'49BB Transitional serial interest: interest to which person becomes entitled on death of spouse or civil partner on or after 6th April 2008

(1) Where a person ("E") is beneficially entitled to an interest in possession in settled property ("the successor interest"), that interest is a transitional serial interest for the purposes of this Chapter if the following conditions are met.

(2) Condition 1 is that—

(a) the settlement commenced before 22nd March 2006, and

(b) immediately before 22nd March 2006, the property then comprised in the settlement was property in which a person other than E was beneficially entitled to an interest in possession ("the previous interest").

(3) Condition 2 is that the previous interest came to an end on or after 6th April 2008 on the death of that other person ("F").

(4) Condition 3 is that, immediately before F died, F was the spouse or civil partner of E.

(5) Condition 4 is that E became beneficially entitled to the successor interest on F's death.

(6) Condition 5 is that—

(a) section 71A below does not apply to the property in which the successor interest subsists, and

(b) the successor interest is not a disabled person's interest.'.

No. 76, page 387, line 47, leave out '49B(1)(a)' and insert '49BA'.

No. 77, page 388, line 4, leave out '49B(1)(a)' and insert '49BA'.— [Dawn Primarolo.]

Amendment proposed: No. 5, page 388, line 18, at beginning insert—

'6 (1) In section 89 (trusts for disabled persons)—

(a) in subsection (4)(a) at end insert—

"(aa) a person who lacked capacity within the meaning of section 272 below, or";

(b) in subsection (4)(c), leave out "or middle" and insert "middle or lower"; and

(c) after subsection (4)(c) at end insert—

"(d) a person who satisfies the Commissioners for Her Majesty's Revenue and Customs that he had a condition that it was at that time reasonable to expect would have such effects on him as to lead to him becoming a person—

(i) falling within subsection (4)(a) or (aa) above, or

(ii) in receipt of an attendance allowance mentioned in subsection (4)(b) above, or

(iii) in receipt of a disability living allowance mentioned in subsection (4)(c) above.".'.— [Mrs. Villiers.]

Question put, That the amendment be made:—

The House divided: Ayes 215, Noes 276.

Question accordingly negatived.

Amendments made: No. 78, page 389, line 36, leave out from 'person' to 'on' in line 37 and insert 'becomes beneficially entitled'.

No. 79, page 392, line 10, leave out 'or 89A'.

No. 80, page 396, line 14, at end insert—

'(ab) a disabled person's interest within section 89B(1)(c) or (d) below, or'.

No. 81, page 399, line 44, after 'interest,' insert 'or a disabled person's interest within section 89B(1)(c) or (d) below'.

No. 82, page 400, line 42, leave out from 'applies' to end of line 44 and insert '—

(a) as though for "an interest in possession" in each place where that appears in subsection (1) above there were substituted "a postponing interest", and

(b) as though, for the purposes of that subsection, each of the following were a "postponing interest"—

(i) an immediate post-death interest;

(ii) a disabled person's interest.".'.

No. 83, page 401, line 20, at end insert—

'(ia) a disabled person's interest within section 89B(1)(c) or (d) below, or'.

No. 84, page 401, line 27, after first 'interest' insert ', disabled person's interest'.

No. 85, page 401, line 29, after 'or' insert 'disabled person's interest or'.

No. 86, page 401, line 37, leave out 'neither' and insert '—

(i) not'.

No. 87, page 401, line 37, leave out 'nor' and insert ',

(ii) not a disabled person's interest within section 89B(1)(c) or (d) below, and

(iii) not'.

No. 88, page 403, line 7, leave out 'property comprised in the testator's estate' and insert 'the property'.

No. 89, page 403, line 18, at end insert—

'(5) Subsection (4) above also applies where—

(a) a person dies before 22nd March 2006,

(b) property comprised in the person's estate immediately before his death is settled by his will,

(c) an event occurs—

(i) on or after 22nd March 2006, and

(ii) within the period of two years after the testator's death,

that involves causing the property to be held on trusts within subsection (6) below,

(d) no immediate post-death interest, and no disabled person's interest, subsisted in the property at any time in the period beginning with the testator's death and ending immediately before the event, and

(e) no other interest in possession subsisted in the property at any time in the period beginning with the testator's death and ending immediately before 22nd March 2006.

(6) Trusts are within this subsection if they would, had they in fact been established by the testator's will and had the testator died at the time of the event mentioned in subsection (5)(c) above, have resulted in—

(a) an immediate post-death interest subsisting in the property, or

(b) section 71A or 71D above applying to the property.".'.

No. 90, page 403, line 42, after 'if' insert '—

(a)'.

No. 91, page 403, line 43, at end insert ', or

(b) the person dies under the age of 18 years and, immediately before the person's death, section 71D of the Inheritance Tax Act 1984 (age 18-to-25 trusts) applies to the property in which the interest subsists.'.

No. 92, page 404, line 6, at end insert—

'(iii) a disabled person's interest within section 89B(1)(c) or (d) of that Act, or'.

No. 93, page 404, line 20, leave out '(1B)' and insert '(1B)(a)'.

No. 94, page 404, line 27, after 'if' insert '—

(a)'.

No. 95, page 404, line 28, at end insert ', or

(b) the person dies under the age of 18 years and, immediately before the person's death, section 71D of the Inheritance Tax Act 1984 (age 18-to-25 trusts) applies to the property in which the interest subsists.".'.

No. 96, page 404, line 33, at end insert—

'(db) by virtue of subsection (2) of section 71E of that Act (age 18-to-25 trusts) does not constitute an occasion on which inheritance tax is charged under that section,".'.— [Dawn Primarolo.]