We present the recent developments and current design and of an imaging Fourier transform spectrometer (IFTS) for use with SCUBA-2, the second generation, wide-field, submillimetre camera currently under development for the James Clerk Maxwell Telescope (JCMT). The spectrometer will offer variable resolution with resolving powers ranging from R ~10 to 5000. The IFTS uses a folded Mach-Zehnder configuration with novel intensity beam dividers and dual input ports for continuous atmospheric cancellation. 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 optics, observing modes, and projected telescope performance of the IFTS are discussed.