Inheritance Tax Act 1984

SCHEDULE 2 U.K. PROVISIONS APPLYING ON REDUCTION OF TAX

Interpretation U.K.

1 U.K. In this Schedule—

(a) references to a reduction are to a reduction of tax by the substitution of [F1 a new Table] in Schedule 1 to this Act, and

(b) references to something happening before or after a reduction are to its happening before or, as the case may be, on or after the date on which [F2 the Table] giving effect to the reduction [F3 comes] into force.

Textual Amendments

F1 Finance Act 1986 Sch. 19, para. 37(1)(a),with effect from 18March 1986.Originally

“new Tables”.

F2 Finance Act 1986 Sch. 19, para. 37(1)(b),with effect from 18March 1986.Originally

“the Tables”.

F3 Finance Act 1986 Sch. 19 para. 37(2)with effect from 18March 1986.Originally

“come”.

[F4 Death within seven years of potentially exempt transfer U.K.

Textual Amendments

F4 Finance Act 1986 Sch. 19, para. 37(3)with effect from 18March 1986.

1A U.K. Where a person who has made a potentially exempt transfer before a reduction dies after that reduction (or after that and one or more subsequent reductions) and within the period of seven years beginning with the date of the transfer, tax shall be chargeable by reason of the transfer proving to be a chargeable transfer only if, and to the extent that, it would have been so chargeable if the Table in Schedule 1 as substituted by that reduction (or by the most recent of those reductions) had applied to that transfer.]

Death within [F5 seven years] of chargeable transfer U.K.

Textual Amendments

F5 Finance Act 1986 Sch. 19, para. 37(4)(a),with effect from 18March 1986.Originally

“three years”.

2 U.K. Where a person who has made a chargeable transfer [F6 other than a potentially exempt transfer)] before a reduction dies after that reduction (or after that and one or more subsequent reductions) and within [F7 seven years] of the transfer, additional tax shall be chargeable by reason of his death only if, and to the extent that, it would have been so chargeable if . . . F8 [F9 the Table] in Schedule 1 as substituted by that reduction (or by the most recent of those reductions) had applied to that transfer.

Textual Amendments

F6 Finance Act 1986 Sch. 19 para. 37(4)(b)with effect from 18March 1986.

F7 Finance Act 1986 Sch. 19, para. 37(4)(a),with effect from 18March 1986.Originally

“three years”.

F8 Repealed by Finance Act 1986 s. 101(3), Sch. 19, para. 37(4)(c)and Sch. 23, Part X,with effect from 18March 1986.

F9 Finance Act 1986 Sch. 19, para. 37(1)(b),with effect from 18March 1986.Originally

“the Tables.”

Settlement without interest in possession U.K.

3 U.K. Where tax is chargeable under section 65 of this Act on any occasion after a reduction and the rate at which it is charged is determined under section 69 by reference to the rate that was (or would have been) charged under section 64 on an occasion before that reduction (or before that and one or more other reductions), the rate charged on the later occasion shall be determined as if . . . F10 [F11 the Table] in Schedule 1 as substituted by that reduction (or by the most recent of those reductions) had been in force on the earlier occasion.

Textual Amendments

F10 Repealed by Finance Act 1986, s. 101(3), Sch. 19, para. 37(5)and Sch. 23, Part Xwith effect from 18March 1986.

F11 Finance Act 1986 Sch. 19, para. 37(1)(b),with effect from 18March 1986.Originally

“the Tables.”

Disposal of trees etc. following exemption on death U.K.

4 U.K. Where the value of any trees or underwood has been left out of account under Chapter III of Part V of this Act in determining the value transferred by the chargeable transfer made on a death before a reduction and tax is chargeable under section 126 on a disposal of the trees or underwood after that reduction (or after that and one or more subsequent reductions) the rate or rates mentioned in section 128 shall be determined as if . . . F12 [F13 the Tables] in Schedule 1 as substituted by that reduction (or by the most recent of those reductions) had applied to that transfer.

Textual Amendments

F12 Repealed by Finance Act 1986, s. 101(3), Sch. 19, para. 37(6)and Sch. 23, Part Xwith effect from 18March 1986.

F13 Finance Act 1986 Sch. 19, para. 37(1)(b),with effect from 18March 1986.Originally

“the Tables.”

Conditionally exempt transfers U.K.

5 U.K. Where tax is chargeable under section 32 [F14 or 32A] of this Act by reason of a chargeable event occurring after a reduction and the rate or rates at which it is charged fall to be determined under the provisions of section 33(1)(b)(ii) by reference to a death which occurred before that reduction (or before that and one or more other reductions) those provisions shall apply as if [F15 the Table] in Schedule 1 as substituted by that reduction (or by the most recent of those reductions) had been in force at the time of the death.

Textual Amendments

F14 Finance Act 1985 Sch. 26, para. 5,in relation to events occurring after 18March 1985.

F15 Finance Act 1986 Sch. 19, para. 37(1)(b),with effect from 18March 1986.Originally

“the Tables.”

Maintenance funds for historic buildings U.K.

6 U.K. Where tax is chargeable under paragraph 8 of Schedule 4 to this Act on any occasion after a reduction and the rate at which it is charged falls to be determined under paragraph 14 of that Schedule by reference to a death which occurred before that reduction (or before that and one or more other reductions) paragraph 14 shall apply as if [F16 the Table] in Schedule 1 as substituted by that reduction (or by the most recent of those reductions) had been in force at the time of the death.

Textual Amendments

F16 Finance Act 1986 Sch. 19, para. 37(1)(b),with effect from 18March 1986.Originally

“the Tables.”

7 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F17

Textual Amendments

F17 Repealed by Finance Act 1986 s. 114(6)and Sch. 23, Part X,with effect from 18March 1986.

[F18 Relevant dependant with pension fund inherited from member over 75 U.K.

Textual Amendments

F18 Sch. 2 para. 6A and preceding cross-heading inserted (6.4.2007) by Finance Act 2006 (c. 25), s. 160, Sch. 22 para. 11

6A U.K.

[F19 Where tax is chargeable under section 151B of this Act on an occasion after a reduction and the rate or rates at which it is charged fall to be determined by reference to the death of a person which occurred before that reduction (or before that and one or more other reductions) that section applies as if the Table in Schedule 1 as substituted by that reduction (or by the most recent of those reductions) had been in force at the time of that person's death.]]

Textual Amendments

F19 Sch. 2 para. 6A repealed (with effect as mentioned in Sch. 19 para. 29(8) of the amending Act) by Finance Act 2007 (c. 11), ss. 67, 114, Sch. 19 para. 27, Sch. 27 Pt. 3(1)