Finance Act 2012

Estate duty etc

33 (1) This paragraph applies if a person makes a qualifying gift and as a result—

(a) estate duty becomes chargeable under section 40 of FA 1930 (exemption from death duties of objects of national etc interest), or

(b) tax becomes chargeable under Schedule 5 to IHTA 1984 (conditional exemption: deaths before 7 April 1976).

(2) Despite any other enactment, the amount of duty or tax that becomes so chargeable as a result of the gift is to be limited to the amount (if any) by which A exceeds B.

(3) For these purposes—

• “A” is the amount of duty or tax that becomes so chargeable as a result of the gift (absent this paragraph), and

• “B” is what that amount would be if the effective rate at which the duty or tax is charged were the highest rate specified in column 3 of the Table in Schedule 1 to IHTA 1984.

(4) References in this paragraph to the amount of duty or tax that becomes so chargeable are to the amount before applying any credit allowable against it under section 33(7) of IHTA 1984.

(5) Nothing in this paragraph entitles a person to any repayment of inheritance tax if the amount of any such credit exceeds the amount (if any) chargeable in accordance with sub-paragraph (2).

(6) In the application of this paragraph to Northern Ireland, for the reference to section 40 of FA 1930 substitute a reference to section 2 of the Finance Act (Northern Ireland) 1931.