32 Chargeable events. U.K.
(1)Where there has been a conditionally exempt transfer of any property, tax shall be charged under this section on the first occurrence after the transfer [F1(or, if the transfer was a potentially exempt transfer, after the death of the transferor)] of an event which under this section is a chargeable event with respect to the property.
(2)If the Treasury are satisfied that at any time an undertaking given with respect to the property under section 30 above or subsection (5)(b) below has not been observed in a material respect, the failure to observe the undertaking is a chargeable event with respect to the property.
(3)If—
(a)the person beneficially entitled to the property dies, or
(b)the property is disposed of, whether by sale or gift or otherwise,
the death or disposal is, subject to subsections (4) and (5) below, a chargeable event with respect to the property.
(4)A death or disposal is not a chargeable event with respect to any property if the personal representatives of the deceased (or, in the case of settled property, the trustees or the person next entitled) within three years of the death make or, as the case may be, the disposal is—
(a)a disposal of the property by sale by private treaty to a body mentioned in Schedule 3 to this Act, or a disposal of it to such a body otherwise than by sale, or
(b)a disposal in pursuance of section 230 below,
and a death or disposal of the property after such a disposal as is mentioned in paragraph (a) or (b) above is not a chargeable event with respect to the property unless there has again been a conditionally exempt transfer of it after that disposal.
(5)A death or disposal otherwise than by sale is not a chargeable event with respect to any property if—
(a)the transfer of value made on the death or the disposal is itself a conditionally exempt transfer of the property, or
(b)the undertaking previously given with respect to the property under section 30 above (or any undertaking previously given with respect to the property under this paragraph) is replaced by a corresponding undertaking given by such person as the Treasury think appropriate in the circumstances of the case.
[F2(5A)This section does not apply where section 32A below applies.]
(6)(7). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F3
Textual Amendments
F1Finance Act 1986 Sch. 19, para. 9,in relation to transfers on or after 18March 1986.
F2Finance Act 1985 Sch. 26, para. 3(2),in relation to events occurring after 18March 1985.
F3 Subss. (6)and (7)repealed by Finance Act 1985 s. 94; Sch. 26, para. 3(3)and Sch. 27, Part XI,in relation to events occurring after 18March 1985.
Modifications etc. (not altering text)
C1 By Finance Act 1985 s. 95,the functions of the Treasury were transferred to the Commissioners of Inland Revenue (“the Board”).