Part IVU.K. Inheritance Tax
57 Reduced rates of tax.U.K.
(1)In the M1Inheritance Tax Act 1984 (in this Part of this Act referred to as “the 1984 Act”) section 8(1) (indexation of rate bands) shall not apply to chargeable transfers made in the year beginning 6th April 1987.
(2)For the Table in Schedule 1 to that Act there shall be substituted the Table set out below:
“ Table of Rates of Tax
| Portion of value | Rate of tax | |
|---|---|---|
| Lower limit | Upper limit | Per cent |
| £ | £ | |
| Lower Limit £ | Upper Limit £ | Per cent. |
| 0 | 90,000 | Nil |
| 90,000 | 140,000 | 30 |
| 140,000 | 220,000 | 40 |
| 220,000 | 330,000 | 50 |
| 330,000 | 60” | |
(3)Subsection (2) above applies to any chargeable transfer (within the meaning of the 1984 Act) made on or after 17th March 1987.
Marginal Citations
58 Securities, other business property and agricultural property.U.K.
(1)The 1984 Act and Schedule 20 to the Finance Act 1986 (gifts with reservation) shall have effect subject to the amendments in Schedule 8 to this Act, being amendments—
(a)making provisions with respect to the treatment for the purposes of the 1984 Act of shares and securities dealt in on the Unlisted Securities Market;
(b)making other amendments of Chapter I of Part V of the 1984 Act (business property);
(c)making provision with respect to the application to certain transfers of relief under that Chapter and under Chapter II of that Part (agricultural property); and
(d)making provision with respect to the payment of tax by instalments.
(2)Subject to subsection (3) below, Schedule 8 to this Act shall have effect in relation to transfers of value made, and other events occurring, on or after 17th March 1987.
(3)The amendments of the 1984 Act made by Schedule 8 to this Act shall be disregarded in determining under section 113A(3) or section 113B(3) of the 1984 Act whether any property acquired by the transferee before 17th March 1987 would be relevant business property in relation to a notional transfer of value made on or after that date.
59 Maintenance funds for historic buildings etc.U.K.
Schedule 9 to this Act shall have effect.
60 Acceptance in lieu: waiver of interest.U.K.
(1)In section 233 of the 1984 Act (interest on unpaid tax) in subsection (1), at the beginning of the words following paragraph (c) there shall be inserted the words “ then, subject to subsection (1A) below ”.
(2)After subsection (1) of that section there shall be inserted the following subsection—
“(1A)If, under section 230 above, the Board agree to accept property in satisfaction of any tax on terms that the value to be attributed to the property for the purposes of that acceptance is determined as at a date earlier than that on which the property is actually accepted, the terms may provide that the amount of tax which is satisfied by the acceptance of the property shall not carry interest under this section from that date.”
(3)This section applies in any case where the acceptance referred to in section 230 of the 1984 Act occurs on or after 17th March 1987.