Inheritance Tax Act 1984
Inheritance Tax Act 1984 (1984 c. 51)
- Inheritance Tax Act 1984 (1984 c. 51)
- PART I GENERAL
- Main charges and definitions
- 1 Charge on transfers.
- 2 Chargeable transfers and exempt transfers.
- 3 Transfers of value.
- 3A Potentially exempt transfers.
- 4 Transfers on death.
- 5 Meaning of estate.
- 6 Excluded property.
- 6A “Long-term UK resident”: individuals
- 6B “Long-term UK resident”: young persons
- 6C “Long-term UK resident”: bodies corporate
- Rates
- 7 Rates.
- 8 Indexation of rate bands.
- 8A Transfer of unused nil-rate band between spouses and civil partners
- 8B Claims under section 8A
- 8C Section 8A and subsequent charges
- 8D Extra nil-rate band on death if interest in home goes to descendants etc
- 8E Residence nil-rate amount: interest in home goes to descendants etc
- 8F Residence nil-rate amount: no interest in home goes to descendants etc
- 8FA Downsizing addition: entitlement: low-value death interest in home
- 8FB Downsizing addition: entitlement: no residential interest at death
- 8FC Downsizing addition: effect: section 8E case
- 8FD Downsizing addition: effect: section 8F case
- 8FE Calculation of lost relievable amount
- 8G Meaning of “brought-forward allowance”
- 8H Meaning of “qualifying residential interest” , “qualifying former residential interest” and “residential property interest”
- 8HA Qualifying former residential interest”: interests in possession
- 8J Meaning of “inherited”
- 8K Meaning of “closely inherited”
- 8L Claims for brought-forward allowance and downsizing addition
- 8M Residence nil-rate amount: cases involving conditional exemption
- 9 Transitional provisions on reduction of tax.
- Dispositions that are not transfers of value (and omissions that do not give rise to deemed dispositions)
- 10 Dispositions not intended to confer gratuitous benefit.
- 11 Dispositions for maintenance of family.
- 12 Dispositions allowable for income tax or conferring benefits under pension scheme.
- 12A Pension drawdown fund not used up: no deemed disposition
- 13 Dispositions by close companies for benefit of employees.
- 13A Dispositions by close companies to employee-ownership trusts
- 14 Waiver of remuneration.
- 15 Waiver of dividends.
- 16 Grant of tenancies of agricultural property.
- 17 Changes in distribution of deceased’s estate, etc.
- PART II EXEMPT TRANSFERS
- CHAPTER I GENERAL
- 18 Transfers between spouses or civil partners.
- 19 Annual exemption.
- 20 Small gifts.
- 21 Normal expenditure out of income.
- 22 Gifts in consideration of marriage or civil partnership.
- 23 Gifts to charities or registered clubs.
- 24 Gifts to political parties.
- 24A Gifts to housing associations.
- 25 Gifts for national purposes, etc.
- 26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- 26A Potentially exempt transfer of property subsequently held for national purposes etc.
- 27 Maintenance funds for historic buildings, etc.
- 28 Employee trusts.
- 28A Employee-ownership trusts
- 29 Loans—modifications of exemptions.
- 29A Abatement of exemption where claim settled out of beneficiary’s own resources.
- CHAPTER II CONDITIONAL EXEMPTION
- 30 Conditionally exempt transfers.
- 31 Designation and undertakings.
- 32 Chargeable events.
- 32A Associated properties.
- 33 Amount of charge under section 32.
- 34 Reinstatement of transferor’s cumulative total.
- 35 Conditional exemption on death before 7th April 1976.
- 35A Variation of undertakings.
- CHAPTER III ALLOCATION OF EXEMPTIONS
- 36 Preliminary.
- 37 Abatement of gifts.
- 38 Attribution of value to specific gifts.
- 39 Attribution of value to residuary gifts.
- 39A Operation of sections 38 and 39 in cases of business or agricultural relief.
- 40 Gifts made separately out of different funds.
- 41 Burden of tax.
- 42 Supplementary.
- PART III SETTLED PROPERTY
- CHAPTER I PRELIMINARY
- 43 Settlement and related expressions.
- 44 Settlor.
- 45 Trustee.
- 46 Interest in possession: Scotland.
- 46A Contract of life insurance entered into before 22nd March 2006 which on that day is settled property in which interest in possession subsists
- 46B Contract of life insurance entered into before 22nd March 2006 which immediately before that day is property to which section 71 applies
- 47 Reversionary interest.
- 47A Settlement power
- 48 Excluded property : reversionary interests and Treasury securities.
- 48ZA Excluded property: property situated outside the UK etc
- 48A Commencement of settlement
- CHAPTER II INTERESTS IN POSSESSION, REVERSIONARY INTERESTS AND SETTLEMENT POWERS
- 49 Treatment of interests in possession.
- 49A Immediate post-death interest
- 49B Transitional serial interests
- 49C Transitional serial interest: interest to which person becomes entitled during period 22nd March 2006 to 5th October 2008
- 49D Transitional serial interest: interest to which person becomes entitled on death of spouse or civil partner on or after 6th October 2008
- 49E Transitional serial interest: contracts of life insurance
- 50 Interests in part, etc.
- 51 Disposal of interest in possession.
- 52 Charge on termination of interest in possession.
- 53 Exceptions from charge under section 52.
- 54 Exceptions from charge on death
- 54A Special rate of charge where settled property affected by potentially exempt transfer.
- 54B Provisions supplementary to section 54A.
- 55A Purchased settlement powers
- 55 Reversionary interest acquired by beneficiary.
- 56 Exclusion of certain exemptions.
- 57 Application of certain exemptions.
- 57A Relief where property enters maintenance fund.
- CHAPTER III SETTLEMENTS WITHOUT INTERESTS IN POSSESSION , AND CERTAIN SETTLEMENTS IN WHICH INTERESTS IN POSSESSION SUBSIST
- Interpretation
- 58 Relevant property.
- 59 Qualifying interest in possession.
- 60 Commencement of settlement.
- 61 Ten-year anniversary.
- 62 Related settlements.
- 62A Same-day additions
- 62B Same day additions: exceptions
- 62C Protected settlements
- 63 Minor interpretative provisions.
- Principal charge to tax
- 64 Charge at ten-year anniversary.
- 65 Charge at other times.
- Rates of principal charge
- 66 Rate of ten-yearly charge.
- 67 Added property, etc.
- 68 Rate before first ten-year anniversary.
- 69 Rate between ten-year anniversaries.
- Special cases—charges to tax
- 70 Property leaving temporary charitable trusts.
- 71 Accumulation and maintenance trusts.
- 71A Trusts for bereaved minors
- 71B Charge to tax on property to which section 71A applies
- 71C Sections 71A and 71B: meaning of “bereaved minor”
- 71D Age 18-to-25 trusts
- 71E Charge to tax on property to which section 71D applies
- 71F Calculation of tax charged under section 71E in certain cases
- 71G Calculation of tax charged under section 71E in all other cases
- 71H Sections 71A to 71G: meaning of “parent”
- 72 Property leaving employee trusts and newspaper trusts.
- 73 Pre-1978 protective trusts.
- 74 Pre-1981 trusts for disabled persons.
- 74A Arrangements involving acquisition of interest in settled property etc
- 74B Section 74A: supplementary provision
- 74C Interpretation of sections 74A and 74B
- Special cases—reliefs
- 75 Property becoming subject to employee trusts.
- 75A Property becoming subject to employee-ownership trust
- 75B Cap on charges for pre-30 October 2024 excluded property
- 76 Property becoming held for charitable purposes, etc.
- Works of art, historic buildings, etc.
- 77 Maintenance funds for historic buildings, etc.
- 78 Conditionally exempt occasions.
- 79 Exemption from ten-yearly charge.
- 79A Variation of undertakings.
- Miscellaneous
- 80 Initial interest of settlor or spouse or civil partner.
- 81 Property moving between settlements.
- 81A Reversionary interests in relevant property
- 81B Excluded property: property to which section 80 applies
- 82 Excluded property : property to which section 81 applies (old cases)
- 82A Excluded property: property to which section 81 applies (new cases)
- 83 Property becoming settled on a death.
- 84 Income applied for charitable purposes.
- 85 Credit for annual charges under Finance Act 1975.
- CHAPTER IV MISCELLANEOUS
- 86 Trusts for benefit of employees.
- 87 Newspaper trusts.
- 88 Protective trusts.
- 89 Trusts for disabled persons.
- 89A Self-settlement by person expected to fall within the definition of “disabled person”
- 89B Meaning of “disabled person's interest”
- 89C Disabled person's interest: powers of advancement etc
- 90 Trustees’ annuities, etc.
- 91 Administration period.
- 92 Survivorship clauses.
- 93 Disclaimers.
- PART IV CLOSE COMPANIES
- Transfers by close companies
- 94 Charge on participators.
- 95 Participator in two companies.
- 96 Preference shares disregarded.
- 97 Transfers within group, etc.
- Alterations of capital, etc.
- 98 Effect of alterations of capital, etc
- Settled property
- 99 Transfers where participators are trustees.
- 100 Alterations of capital, etc. where participators are trustees.
- 101 Companies interests in settled property.
- General
- 102 Interpretation.
- PART V MISCELLANEOUS RELIEFS
- CHAPTER I BUSINESS PROPERTY
- 104 The relief.
- 105 Relevant business property.
- 106 Minimum period of ownership.
- 107 Replacements.
- 108 Successions.
- 109 Successive transfers.
- 109A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- 110 Value of business.
- 111 Value of certain shares and securities.
- 112 Exclusion of value of excepted assets.
- 113 Contracts for sale.
- 113A Transfers within seven years before death of transferor.
- 113B Application of section 113A to replacement property.
- 114 Avoidance of double relief.
- CHAPTER II AGRICULTURAL PROPERTY
- 115 Preliminary.
- 116 The relief.
- 117 Minimum period of occupation or ownership.
- 118 Replacements.
- 119 Occupation by company or partnership.
- 120 Successions.
- 121 Successive transfers.
- 122 Agricultural property of companies.
- 123 Provisions supplementary to section 122.
- 124 Contracts for sale.
- 124A Transfers within seven years before death of transferor.
- 124B Application of section 124A to replacement property.
- 124C Environmental management agreements
- Chapter 2A 100% Relief allowance and 100% trust relief allowance
- 124D 100% relief allowance
- 124E Transfer of unused 100% relief allowance
- 124F Claims under section 124E
- 124G 100% trust relief allowance (relevant property)
- 124H Trust maximum allowance
- 124I Trust maximum allowance (qualifying pre-commencement settlements)
- 124J 100% trust relief allowance (special trusts)
- 124K 100% trust relief allowance (age 18-to-25 trusts)
- CHAPTER III WOODLANDS
- 125 The relief.
- 126 Charge to tax on disposal of trees or underwood.
- 127 Amount subject to charge.
- 128 Rate of charge.
- 129 Credit for tax charged.
- 130 Interpretation.
- CHAPTER IV TRANSFERS WITHIN THREE YEARS BEFORE DEATH
- 131 The relief.
- 132 Wasting assets.
- 133 Shares—capital receipts.
- 134 Payments of calls.
- 135 Reorganisation of share capital, etc.
- 136 Transactions of close companies.
- 137 Interests in land.
- 138 Leases.
- 139 Other property.
- 140 Interpretation.
- CHAPTER V MISCELLANEOUS
- Successive charges
- 141 Two or more transfers within five years.
- 141A Apportionment of relief under section 141
- Changes in distribution of deceased’s estate, etc.
- 142 Alteration of dispositions taking effect on death.
- 143 Compliance with testator’s request.
- 144 Distribution etc. from property settled by will.
- 145 Redemption of surviving spouse’s or civil partner's life interest.
- 146 Inheritance (Provision for Family and Dependants) Act 1975.
- 147 Scotland; legitim. etc.
- Mutual and voidable transfers
- 148, 149. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- 150 Voidable transfers.
- Pension schemes, etc
- 150A Certain pension interests treated as part of estate
- 151 Other provision about pension interests
- 151A Person dying with alternatively secured pension fund
- 151B Relevant dependant with pension fund inherited from member over 75
- 151BA Rate or rates of charge under section 151B
- 151C Dependant dying with other pension fund
- 151D Unauthorised payment where person dies over 75 with pension or annuity
- 151E Rate or rates of charge under section 151D
- 152 Cash options.
- 153 Overseas pensions.
- Payments to victims of persecution during Second World War era
- 153ZA Qualifying payments
- Emergency services
- 153A Death of emergency service personnel etc
- Armed forces
- 154 Death on active service, etc.
- 155 Visiting forces, etc.
- Foreign diplomats etc
- 155ZA Foreign diplomats etc
- Constables and service personnel
- 155A Death of constables and service personnel targeted because of their status
- Apsley House and Chevening Estate
- 156 Apsley House and Chevening Estate.
- Non-residents’ bank accounts
- 157 Non-residents’ bank accounts.
- Double taxation relief
- 158 Double taxation conventions.
- 159 Unilateral relief.
- Dormant assets
- 159A Treatment of dormant assets
- PART VI VALUATION
- CHAPTER I GENERAL
- 160 Market value.
- 161 Related property.
- 162 Liabilities.
- 162A Liabilities attributable to financing excluded property
- 162AA Liabilities attributable to financing non-residents' foreign currency accounts
- 162B Liabilities attributable to financing certain relievable property
- 162C Sections 162A, 162AA and 162B: supplementary provision
- 163 Restriction on freedom to dispose.
- 164 Transferor’s expenses.
- 165 Tax on capital gains.
- 166 Creditors’ rights.
- 167 Life policies, etc.
- 168 Unquoted shares and securities.
- 169 Farm cottages.
- 170 Leases for life, etc.
- CHAPTER II ESTATE ON DEATH
- 171 Changes occurring on death.
- 172 Funeral expenses.
- 173 Expenses incurred abroad.
- 174 Income tax and unpaid inheritance tax.
- 175 Liability to make future payments, etc.
- 175A Discharge of liabilities after death
- 176 Related property etc.—sales.
- 177 Scottish agricultural leases.
- CHAPTER III SALE OF SHARES ETC. FROM DECEASED’S ESTATE
- 178 Preliminary.
- 179 The relief.
- 180 Effect of purchases.
- 181 Capital receipts.
- 182 Payment of calls.
- 183 Changes in holdings.
- 184 Exchanges.
- 185 Acquisition of like investments.
- 186 Value of part of a fund.
- 186A Cancelled investments.
- 186B Suspended investments.
- 187 Attribution of values to specific investments.
- 188 Limitation of loss on sale.
- 189 Date of sale or purchase.
- CHAPTER IV SALE OF LAND FROM DECEASED’S ESTATE
- 190 Preliminary.
- 191 The relief.
- 192 Effect of purchases.
- 193 Changes between death and sale.
- 194 Leases.
- 195 Valuation by reference to other interests.
- 196 Sales to beneficiaries etc. and exchanges.
- 197 Compulsory acquisition more than three years after death.
- 197A Sales in fourth year after death.
- 198 Date of sale or purchase.
- PART VII LIABILITY
- General rules
- 199 Dispositions by transferor.
- 200 Transfer on death.
- 201 Settled property.
- 202 Close companies.
- 203 Liability of spouse or civil partner.
- 204 Limitation of liability.
- 205 More than one person liable.
- Special cases
- 206 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- 207 Conditional exemption, etc.
- 208 Woodlands.
- 209 Succession in Scotland.
- 210 Pension rights
- Burden of tax, etc.
- 211 Burden of tax on death.
- 212 Powers to raise tax.
- 213 Refund by instalments.
- 214 Certificates of tax paid.
- PART VIII ADMINISTRATION AND COLLECTION
- Management
- 215 General.
- Accounts and information
- 216 Delivery of accounts.
- 217 Defective accounts.
- 218 Non-resident trustees.
- 218A Instruments varying dispositions taking effect on death
- 218B Pensions: information powers
- 219 Power to require information.
- 219A Power to call for documents etc.
- 219B Appeal against requirement to produce documents etc.
- 220 Inspection of property.
- 220A Exchange of information with other countries.
- Determinations , reviews and appeals
- 221 Notices of determination.
- 222 Appeals against determinations.
- 223 Late notice of appeal.
- 223A Appeal: HMRC review or determination by tribunal
- 223B Appellant requires review by HMRC
- 223C HMRC offer review
- 223D Notifying appeal to the tribunal
- 223E Nature of review etc
- 223F Effect of conclusions of review
- 223G Notifying appeal to tribunal after review concluded
- 223H Notifying appeal to tribunal after review offered but not accepted
- 223I Interpretation of sections 223A to 223I
- 224 Determination of appeal by tribunal.
- 225 Appeals from Special Commissioners.
- 225A Extension of regulation-making powers.
- Payment
- 226 Payment: general rules.
- 226A Tax on notional pension property: withholding of benefits
- 226B Tax on notional pension property: direct payment by scheme administrator
- 227 Payment by instalments—land, shares and businesses.
- 228 Shares, etc. within section 227.
- 229 Payment by instalments—woodlands.
- 230 Acceptance of property in satisfaction of tax.
- 231 Powers to transfer property in satisfaction of tax.
- 232 Administration actions.
- Interest
- 233 Interest on unpaid tax.
- 234 Interest on instalments.
- 235 Interest on overpaid tax.
- 236 Special cases.
- Inland Revenue charge for unpaid tax
- 237 Imposition of charge.
- 238 Effect of purchases.
- Certificates of discharge
- 239 Certificates of discharge.
- Adjustments
- 240 Underpayments.
- 240A Underpayments: supplementary
- 240B Underpayments involving offshore matters etc
- 241 Overpayments.
- Recovery of tax
- 242 Recovery of tax.
- 243 Scotland: recovery of tax in sheriff court.
- 244 Rights to address court.
- Penalties
- 245 Failure to deliver accounts.
- 245A Failure to provide information etc.
- 246 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- 247 Provision of incorrect information.
- 248 Failure to remedy errors.
- 249 Recovery of penalties.
- 250 Time limit for recovery.
- 251 Appeals against summary determination of penalties.
- 252 Effect of award by the tribunal.
- 253 Mitigation of penalties.
- Miscellaneous
- 254 Evidence.
- 255 Determination of questions on previous view of law.
- 256 Regulations about accounts, etc.
- 257 Form etc. of accounts.
- 258 Service of documents.
- 259 Inspection of records.
- 260 Inland Revenue Regulation Act 1890.
- 261 Scotland inventories.
- PART IX MISCELLANEOUS AND SUPPLEMENTARY
- Miscellaneous
- 262 Tax chargeable in certain cases of future payments, etc.
- 263 Annuity purchased in conjunction with life policy.
- 264 Transfers reported late.
- 265 Chargeable transfers affecting more than one property.
- 266 More than one chargeable transfer on one day.
- 267 Persons treated as domiciled in United Kingdom.
- 267ZA Election to be treated as domiciled in United Kingdom
- 267ZB Section 267ZA: further provision about election
- 267ZC Election to be treated as a long-term UK resident
- 267ZD Further provision about elections under section 267ZC
- 267ZE Subject of domicile election treated as a long-term UK resident
- 267ZF Double taxation conventions operating by reference to deemed domicile
- 267A Limited liability partnerships.
- Interpretation
- 268 Associated operations.
- 269 Control of company.
- 270 Connected persons.
- 271 Property of corporations sole.
- 271A Qualifying non-UK pension scheme
- 272 General interpretation.
- Supplementary
- 273 Transition from estate duty.
- 274 Commencement.
- 275 Continuity, and construction of references to old and new law.
- 276 Consequential amendments.
- 277 Repeals.
- 278 Short title.
- SCHEDULE A1 Non-excluded overseas property
- PART 1 Overseas property with value attributable to UK residential property or UK agricultural property
- Introductory
- Close company and partnership interests
- Loans
- PART 2 Supplementary
- Disposals and repayments
- Tax avoidance arrangements
- Double taxation relief arrangements
- PART 3 Interpretation
- Relevant UK property
- UK agricultural property
- UK residential property interest
- Close companies
- Partnerships
- SCHEDULE 1A Gifts to charities etc: tax charged at lower rate
- Application of this Schedule
- The relief
- The components of the estate
- The donated amount
- The baseline amount
- Rules for determining whether charitable giving condition is met
- Election to merge parts of the estate
- Opting out
- Elections: procedure
- General interpretation
- SCHEDULE 2 PROVISIONS APPLYING ON REDUCTION OF TAX
- Interpretation
- Death within seven years of potentially exempt transfer
- Death within seven years of chargeable transfer
- Settlement without interest in possession
- Disposal of trees etc. following exemption on death
- Conditionally exempt transfers
- Maintenance funds for historic buildings
- Relevant dependant with pension fund inherited from member over 75
- SCHEDULE 3 GIFTS FOR NATIONAL PURPOSES, ETC.
- SCHEDULE 4 MAINTENANCE FUNDS FOR HISTORIC BUILDINGS, ETC.
- PART I TREASURY DIRECTIONS
- Giving of directions
- Conditions
- Withdrawal
- Information
- Enforcement of trusts
- PART II PROPERTY LEAVING MAINTENANCE FUNDS
- Charge to tax
- Exceptions from charge
- Rates of charge
- Maintenance fund following interest in possession
- PART III PROPERTY BECOMING COMPRISED IN MAINTENANCE FUNDS
- SCHEDULE 5 CONDITIONAL EXEMPTION: DEATHS BEFORE 7TH APRIL 1976
- Charge on failure of condition of exemption—objects
- Charge on failure of condition of exemption—buildings etc.
- Further undertaking on disposal
- Requirements of sale
- SCHEDULE 5A Qualifying payments: victims of persecution during Second World War era
- PART 1 Compensation payments
- PART 2 Ex-gratia payments
- SCHEDULE 6 TRANSITION FROM ESTATE DUTY
- General
- Surviving spouse or former spouse
- Sales and mortgages of reversionary interests
- Objects of national etc. interest left out of account on death
- SCHEDULE 7 COMMENCEMENT: SUPPLEMENTARY RULES
- SCHEDULE 8 CONSEQUENTIAL AMENDMENTS
- The Land Registration Act 1925
- The Crown Proceedings Act 1947
- The Land Charges Act 1972
- The Finance Act 1975
- The Finance Act 1977
- The Capital Gains Tax Act 1979
- The National Heritage Act 1980
- The Finance Act 1980
- The Supreme Court Act 1981
- The Finance Act 1982
- The Finance (No. 2) Act 1983
- The Value Added Tax Act 1983
- The Land Registration Act (Northern Ireland) 1970
- SCHEDULE 9 REPEALS
Feedback