We present the conceptual design of an imaging Fourier transform spectrometer (IFTS) for use with SCUBA-2, the second generation, wide-field, submillimeter camera currently under development for the James Clerk Maxwell Telescope (JCMT). This system, which is planned for operation in 2006, will provide simultaneous, broadband, intermediate spectral resolution imaging across both the 850 and 450 µm bands. The spectrometer will offer variable resolution with resolving powers ranging from R ~10 to 5000. When operated at low resolution, the IFTS will provide continuum measurements, well suited to spectral index mapping of molecular clouds, as well as bright nearby galaxies. The IFTS uses a folded Mach-Zehnder configuration and novel intensity beamdividers. The preliminary design, projected telescope performance and scientific impact of the IFTS are discussed. The preliminary design, novel observing modes, projected telescope performance and scientific impact of the IFTS are discussed.