(1)Except as otherwise provided, where any tax charged on the value transferred by a chargeable transfer, or any interest on it, is for the time being unpaid a charge for the amount unpaid (to be known as an Inland Revenue charge) is by virtue of this section imposed in favour of the Board on—
(a)any property to the value of which the value transferred is wholly or partly attributable, and
(b)where the chargeable transfer is made by the making of a settlement or is made under Part III of this Act, any property comprised in the settlement.
(2)References in subsection (1) above to any property include references to any property directly or indirectly representing it.
(3)Where the chargeable transfer is made on death, personal or movable property situated in the United Kingdom which was beneficially owned by the deceased immediately before his death and vests in his personal representatives is not subject to the Inland Revenue charge; and for this purpose “personal property” includes leaseholds [F1and undivided shares in land held on trust for sale, whether statutory or not,] and the question whether any property was beneficially owned by the deceased shall be determined without regard to section 49(1) above.
[F2(3A)In the case of a potentially exempt transfer which proves to be a chargeable transfer—
(a)property concerned, or an interest in property concerned, which has been disposed of to a purchaser before the transferor’s death is not subject to the Inland Revenue charge, but
(b)property concerned which has been otherwise disposed of before the death and property which at the death represents any property or interest falling within paragraph (a) above shall be subject to the charge;
and in this subsection “property concerned” means property to the value of which the value transferred by the transfer is wholly or partly attributable.]
(4)No heritable property situated in Scotland is subject to the Inland Revenue charge, but where such property is disposed of any other property for the time being representing it is subject to the charge to which the first-mentioned property would have been subject but for this subsection.
(5)The Inland Revenue charge imposed on any property shall take effect subject to any incumbrance on it which is allowable as a deduction in valuing that property for the purposes of the tax.
(6)Except as provided by section 238 below, a disposition of property subject to an Inland Revenue charge shall take effect subject to that charge.
Textual Amendments
F1Words in s. 237(3) repealed (1.1.1997) by 1996 c. 47, s. 25(2), Sch. 4 (with ss. 24(2), 25(4)(5)); S.I. 1996/2974, art. 2
F2Finance Act 1986 Sch. 19, para. 34,with effect from 18March 1986.