(1)For the Table in Schedule 1 to the M1Inheritance Tax Act 1984 there shall be substituted—
| Portion of value | Rate of tax | |
|---|---|---|
| Lower limit | Upper limit | Per cent. |
| £ | £ | |
| 0 | 110,000 | Nil |
| 110,000 | 40” | |
(2)Subsection (1) above shall apply to any chargeable transfer made on or after 15th March 1988, and section 8(1) of the M2Inheritance Tax Act 1984 (indexation of rate bands) shall not apply to chargeable transfers made in the year beginning 6th April 1988.
(3)Section 8(1A) of that Act shall cease to have effect.
(1)In section 24(1) of the Inheritance Tax Act 1984 (exemption from tax for gifts to political parties) paragraph (b) (which limits the exemption to £100,000 in respect of gifts on or within one year of the death of the transferor) shall cease to have effect.
(2)This section shall have effect in relation to transfers of value made on or after 15th March 1988.