Inheritance Tax Act 1984

226 Payment: general rules. U.K.

(1) Except as otherwise provided by the following provisions of this Part of this Act, the tax on the value transferred by a chargeable transfer shall be due six months after the end of the month in which the chargeable transfer is made or, in the case of a transfer made after 5th April and before 1st October in any year otherwise than on death, at the end of April in the next year.

(2) Personal representatives shall, on delivery of their account, pay all the tax for which they are liable and may, on delivery of that account, also pay any part of the tax chargeable on the death for which they are not liable, if the persons liable for it request them to make the payment.

(3) So much of the tax chargeable on the value transferred by a chargeable transfer made within [F1 seven years] . . . F2 of the death of the transferor as—

(a) exceeds what it would have been had the transferor died more than [F1 seven years] after the transfer . . . F2

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F2

shall be due six months after the end of the month in which the death occurs.

[F3 (3A) Without prejudice to subsection (3) above, the tax chargeable on the value transferred by a potentially exempt transfer which proves to be a chargeable transfer shall be due six months after the end of the month in which the transferor’s death occurs.

(3B) So much (if any) of the tax chargeable on the value transferred by a chargeable transfer made under Chapter III of Part III of this Act within the period of seven years ending with the settlor’s death as exceeds what it would have been had the settlor died more than seven years after the date of the transfer shall be due six months after the end of the month in which the death occurs.]

[F4 (3C) Tax chargeable under Chapter 3 of Part 3 of this Act on the value transferred by a chargeable transfer, other than any for which the due date is given by subsection (3B) above, is due six months after the end of the month in which the chargeable transfer is made.]

(4) Tax chargeable under section 32, [F5 32A], 79 [F6 or 126] above or under Schedule 5 to this Act F7 . . . shall be due six months after the end of the month in which the event by reason of which it is chargeable occurs.

(5) The Board may in the first instance, and without prejudice to the recovery of the remainder of the tax, accept or demand payment of an amount by reference to the value stated in an account delivered to the Board under section 216 or 217 above.

(6) Nothing in this section shall be taken to authorise the recovery from, or require the payment by, any person of tax in excess of his liability as limited by section 204 above.

Textual Amendments

F1 Finance Act 1986 Sch. 19, para. 30(1),with effect from 18March 1986.Originally

“three years”.

F2 Repealed by 1988 s. 148and Sch. 14, Part X,with effect from 15March 1988.

F3 Finance Act 1986 Sch. 19, para. 30(2),with effect from 18March 1986.

F4 S. 226(3C) inserted (with effect in accordance with Sch. 25 para. 5(4) of the amending Act) by Finance Act 2014 (c. 26), Sch. 25 para. 5(2)

F5 Finance Act 1985 Sch. 26, para. 11,in relation to events occurring after 18March 1985.

F6 Words in s. 226(4) substituted (with effect as mentioned in Sch. 16 paras. 85, 106 of the amending Act) by Finance Act 2011 (c. 11), s. 65, Sch. 16 para. 55(a)

F7 Words in s. 226(4) omitted (with effect as mentioned in Sch. 16 paras. 85, 106 of the amending Act) by virtue of Finance Act 2011 (c. 11), s. 65, Sch. 16 para. 55(b)