Inheritance Tax Act 1984

Accounts and information U.K.

216 Delivery of accounts. U.K.

(1) Except as otherwise provided by this section or by regulations under section 256 below, the personal representatives of a deceased person and every person who—

(a) is liable as transferor for tax on the value transferred by a chargeable transfer, or would be so liable if tax were chargeable on that value, or

(b) is liable as trustee of a settlement for tax on the value transferred by a transfer of value, or would be so liable if tax were chargeable on that value, or

[F1 (bb) is liable under section 199(1)(b) above for tax on the value transferred by a potentially exempt transfer which proves to be a chargeable transfer, or would be so liable if tax were chargeable on that value, or

(bc) is liable under section 200(1)(c) above for tax on the value transferred by a chargeable transfer made on death, so far as the tax is attributable to the value of property which, apart from section 102(3) of the Finance Act 1986, would not form part of the deceased’s estate, or would be so liable if tax were chargeable on the value transferred on the death, or]

[F2 (bca) is liable under section 200(1A) or 210(2) [F3 or (3)] above for tax in respect of any amount, or would be so liable if tax were chargeable in respect of that amount, or]

[F4 (bd) is liable under section 201(1)(b), (c) or (d) above for tax on the value transferred by a potentially exempt transfer which is made under section 52 above and which proves to be a chargeable transfer, or would be so liable if tax were chargeable on that value, or]

(c) is liable as trustee of a settlement for tax on an occasion on which tax is chargeable under Chapter III of Part III of this Act (apart from section 79), or would be so liable if tax were chargeable on the occasion,

shall deliver to the Board an account specifying to the best of his knowledge and belief all appropriate property and the value of that property.

(2) Where in the case of the estate of a deceased person no grant of representation or confirmation has been obtained in the United Kingdom before the expiration of the period of twelve months from the end of the month in which the death occurred—

(a) every person in whom any of the property forming part of the estate vests (whether beneficially or otherwise) on or at any time after the deceased’s death or who at any such time is beneficially entitled to an interest in possession in any such property, and

(b) where any of the property is at any such time comprised in a settlement and there is no person beneficially entitled to an interest in possession in that property, every person for whose benefit any of that property (or income from it) is applied at any such time,

shall deliver to the Board an account specifying to the best of his knowledge and belief the appropriate property vested in him, in which he has an interest or which (or income from which) is applicable for his benefit and the value of that property.

[F5 (3) Subject to subsections (3A) and (3B) below, where an account is to be delivered by personal representatives (but not where it is to be delivered by a person who is an executor of the deceased only in respect of settled land in England and Wales), the appropriate property is—

(a) all property which formed part of the deceased’s estate immediately before his death [F6 (or would do apart from section 151A(3)(b) or 151C(3)(b) above)] , other than property which would not, apart from section 102(3) of the M1 Finance Act 1986, form part of his estate; and

(b) all property to which was attributable the value transferred by any chargeable transfers made by the deceased within seven years of his death.

(3A) If the personal representatives, after making the fullest enquiries that are reasonably practicable in the circumstances, are unable to ascertain the exact value of any particular property, their account shall in the first instance be sufficient as regards that property if it contains—

(a) a statement to that effect;

(b) a provisional estimate of the value of the property; and

(c) an undertaking to deliver a further account of it as soon as its value is ascertained.

(3B) The Board may from time to time give such general or special directions as they think fit for restricting the property to be specified in pursuance of subsection (3) above by any class of personal representatives.]

(4) Where subsection (3) above does not apply the appropriate property is any property to the value of which the tax is or would be attributable [F7 (or would be apart from section 151A(3)(b), 151C(3)(b) or 151B(4) above)].

(5) Except in the case of an account to be delivered by personal representatives, a person shall not be required to deliver an account under this section with respect to any property if a full and proper account of the property, specifying its value, has already been delivered to the Board by some other person who—

(a) is or would be liable for the tax attributable to the value of the property, and

(b) is not or would not be liable with him jointly as trustee;

and a person within subsection (2) above shall not be required to deliver an account under that subsection if he or another person within that subsection has satisfied the Board that an account will in due course be delivered by the personal representatives.

(6) An account under the preceding provisions of this section shall be delivered—

(a) in the case of an account to be delivered by personal representatives, before the expiration of the period of twelve months from the end of the month in which the death occurs, or, if it expires later, the period of three months beginning with the date on which the personal representatives first act as such;

[F8 (aa) in the case of an account to be delivered by a person within subsection (1)(bb) [F9 or (bd)] above, before the expiration of the period of twelve months from the end of the month in which the death of the transferor occurs;

(ab) in the case of an account to be delivered by a person within subsection (1)(bc) above, before the expiration of the period of twelve months from the end of the month in which the death occurs;]

[F10 (ac) in the case of an account to be delivered by the scheme administrator of a registered pension scheme [F11 otherwise than by reason of a liability to tax under section 210(3)], before the expiration of the period of twelve months from the end of the month in which the death occurs [F12 , the scheme administrator becomes aware of the death] or the person ceases to be a relevant dependant of the member [F13 (depending on which occasions the charge)] ;]

(b) in the case of an account to be delivered by a person within subsection (2) above, before the expiration of the period of three months from the time when he first has reason to believe that he is required to deliver an account under that subsection;

(c) in the case of an account to be delivered by any other person, before the expiration of the period of twelve months from the end of the month in which the transfer is made or, if it expires later, the period of three months beginning with the date on which he first becomes liable for tax.

(7) A person liable for tax under section 32 [F14 or 32A], 79 [F15 , 126 or 151D] above or under Schedule 5 to this Act shall deliver an account under this section before the expiration of the period of six months from the end of the month in which the event by reason of which the tax is chargeable occurs.

Textual Amendments

F1 Finance Act 1986 Sch. 19, para. 29,with effect from 18March 1986.

F2 S. 216(1)(bca) inserted (6.4.2006) by Finance Act 2006 (c. 25), s. 160, Sch. 22 para. 7(2)

F3 Words in s. 216(1)(bca) inserted (with effect as mentioned in Sch. 28 para. 15(3) of the amending Act) by Finance Act 2008 (c. 9), s. 91, Sch. 28 para. 12(2)

F4 Finance Act 1987 (No.2) Sch. 7, para. 4(2),with effect from 17March 1987.

F5 S. 216(3)(3A)(3B) substituted for s. 216(3) (27.7.1999 with effect as mentioned in s. 105(2) of the amending Act) by 1999 c. 16, s. 105

F6 Words in s. 216(3)(a) inserted (6.4.2006) by Finance Act 2006 (c. 25), s. 160, Sch. 22 para. 7(3)

F7 Words in s. 216(4) inserted (6.4.2006) by Finance Act 2006 (c. 25), s. 160, Sch. 22 para. 7(4)

F8 Finance Act 1986 Sch. 19, para. 29(3),with effect from 18March 1986.

F9 Finance Act 1987 (No.2) Sch. 7, para. 4(3),with effect from 17March 1987.

F10 S. 216(6)(ac) inserted (6.4.2006) by Finance Act 2006 (c. 25), s. 160, Sch. 22 para. 7(5)

F11 Words in s. 216(6)(ac) inserted (with effect as mentioned in Sch. 28 para. 15(3) of the amending Act) by Finance Act 2008 (c. 9), s. 91, Sch. 28 para. 12(3)

F12 Words in s. 216(6)(ac) inserted (with effect as mentioned in Sch. 19 para. 29(8) of the amending Act) by Finance Act 2007 (c. 11), s. 69, Sch. 19 para. 24(a)

F13 Words in s. 216(6)(ac) inserted (with effect as mentioned in Sch. 19 para. 29(8) of the amending Act) by Finance Act 2007 (c. 11), s. 69, Sch. 19 para. 24(b)

F14 Finance Act 1985 Sch. 26, para. 11,in relation to events occurring after 18March 1985.

F15 Words in s. 216(7) substituted (with effect as mentioned in Sch. 28 para. 15(3) of the amending Act) by Finance Act 2008 (c. 9), s. 91, Sch. 28 para. 12(4)

Modifications etc. (not altering text)

C1 S. 216 excluded (1.8.2002) by S.I. 2002/1733, reg. 4

C2 S. 216 excluded (1.8.2002) by S.I. 2002/1731, reg. 3

Marginal Citations

M1 1986 c.41.

217 Defective accounts. U.K.

If a person who has delivered an account under section 216 above discovers at any time that the account is defective in a material respect by reason of anything contained in or omitted from it he shall, within six months of that time, deliver to the Board a further account containing such information as may be necessary to remedy the defect.

218 Non-resident trustees. U.K.

(1) Where any person, in the course of a trade or profession carried on by him, other than the profession of a barrister, has been concerned with the making of a settlement and knows or has reason to believe—

(a) that the settlor was domiciled in the United Kingdom, and

(b) that the trustees of the settlement are not or will not be resident in the United Kingdom,

he shall, within three months of the making of the settlement, make a return to the Board stating the names and addresses of the settlor and of the trustees of the settlement.

(2) A person shall not be required to make a return under this section in relation to—

(a) any settlement made by will, or

(b) any other settlement, if such a return in relation to that settlement has already been made by another person or if an account has been delivered in relation to it under section 216 above.

(3) For the purposes of this section trustees of a settlement shall be regarded as not resident in the United Kingdom unless the general administration of the settlement is ordinarily carried on in the United Kingdom and the trustees or a majority of them (and, where there is more than one class of trustees, a majority of each class) are for the time being resident in the United Kingdom.

[F16 218A Instruments varying dispositions taking effect on death U.K.

(1) Where—

(a) an instrument is made varying any of the dispositions of the property comprised in the estate of a deceased person immediately before his death,

(b) the instrument contains a statement under subsection (2) of section 142 above, and

(c) the variation results in additional tax being payable,

the relevant persons (within the meaning of that subsection) shall, within six months after the day on which the instrument is made, deliver a copy of it to the Board and notify them of the amount of the additional tax.

(2) To the extent that any of the relevant persons comply with the requirements of this section, the others are discharged from the duty to comply with them.]

Textual Amendments

F16 S. 218A inserted (24.7.2002 with application as mentioned in s. 120(4) of the amending Act) by 2002 c. 23, s. 120(2)(4)

219 Power to require information. U.K.

(1) The Board may by notice in writing require any person to furnish them within such time, not being less than thirty days, as may be specified in the notice with such information as the Board may require for the purposes of this Act.

[F17 (1A) A notice under this section is not to be given except with the consent of [F18 the tribunal] and the [F19 tribunal is to give consent] only on being satisfied that in all the circumstances the Board are justified in proceeding under this section.]

(2) A notice under this section may be combined with one relating to income tax.

(3) Subject to subsection (4) below, a barrister or solicitor shall not be obliged in pursuance of a notice under this section to disclose, without his client’s consent, any information with respect to which a claim to professional privilege could be maintained.

(4) A solicitor may be obliged in pursuance of a notice under this section to disclose the name and address of his client; and if his client is resident outside the United Kingdom and carries on outside the United Kingdom a business which includes the provision for persons in the United Kingdom of services or facilities relating to—

(a) the formation of companies outside the United Kingdom,

(b) the making of settlements outside the United Kingdom, or

(c) the securing of control over, or the management or administration of, such companies or settlements,

a solicitor may also be so obliged to disclose the names and addresses of persons in the United Kingdom for whom such services or facilities have been provided in the course of that business.

Textual Amendments

F17 Finance Act 1990 s. 124,with effect from 26 July 1990.

F18 Words in s. 219(1A) substituted (1.4.2009) by The Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009 (S.I. 2009/56), arts. 1, 3, Sch. 1 para. 112(a)

F19 Words in s. 219(1A) substituted (1.4.2009) by The Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009 (S.I. 2009/56), arts. 1, 3, Sch. 1 para. 112(b)

Modifications etc. (not altering text)

C3 S. 219 modified (28.7.2000) by 2000 c. 17, s. 147(2)

C4 See Finance Act 1990 s. 125(3)(4)(6).

[F20 219A Power to call for documents etc. U.K.

(1) An officer of the Board may by notice in writing require any person who has delivered, or is liable to deliver, an account under section 216 or 217 above, within such time as may be specified in the notice—

(a) to produce to the officer such documents as are in the person’s possession or power and as the officer may reasonably require for any of the purposes mentioned in subsection (2) below; and

(b) to furnish the officer with such accounts or particulars as he may reasonably require for any of those purposes.

(2) The purposes are—

(a) enquiring into an account under section 216 or 217 above (including any claim or election included in the account);

(b) determining whether and, if so, the extent to which such an account is incorrect or incomplete; and

(c) making a determination for the purposes of a notice under section 221 below.

(3) To comply with a notice under subsection (1) above, copies of documents may be produced instead of originals; but the copies must be photographic or otherwise by way of facsimile.

(4) If so required by a notice in writing given by the officer, in the case of any document specified in the notice, the original of any copy produced under subsection (3) above must be produced for inspection by him within such time as may be specified in the notice.

(5) The time specified in a notice under subsection (1) or (4) above shall not be less than thirty days.

(6) The officer may take copies of, or make extracts from, any document produced to him under subsection (1) or (4) above.

(7) A notice under subsection (1) above does not oblige a person to produce documents or furnish accounts or particulars relating to the conduct of any pending appeal by him.]

Textual Amendments

F20 Ss. 219A, 219B inserted (27.7.1999) by 1999 c. 16, s. 106

F21 219B Appeal against requirement to produce documents etc. U.K.

(1) An appeal may be brought against any requirement imposed by a notice under section 219A(1) above to produce any document or to furnish any accounts or particulars.

(2) Subject to the following provisions of this section, the provisions of this Act relating to appeals shall have effect in relation to an appeal under this section as they have effect in relation to an appeal against a determination specified in a notice under section 221 below.

(3) An appeal under this section must be brought within the period of thirty days beginning with the date on which the notice under section 219A(1) above is given.

(4) On an appeal under this section the [F22 tribunal] may—

(a) if it appears F23 . . . that the production of the document or the furnishing of the accounts or particulars was reasonably required by the officer of the Board for any of the purposes mentioned in section 219A(2) above, confirm the notice under section 219A(1) above so far as relating to the requirement; or

(b) if it does not so appear F23 . . . , set aside that notice so far as so relating.

(5) Where, on an appeal under this section, the [F24 tribunal confirms] the notice under section 219A(1) above so far as relating to any requirement, the notice shall have effect in relation to that requirement as if it had specified thirty days beginning with the determination of the appeal.

(6) Neither the person required to produce documents or furnish accounts or particulars nor the officer of the Board shall be entitled to appeal [F25 under sections 11 or 13 of the TCEA 2007] against the determination of an appeal under this section.

Textual Amendments

F21 Ss. 219A, 219B inserted (27.7.1999) by 1999 c. 16, s. 106

F22 Word in s. 219B(4) substituted (1.4.2009) by The Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009 (S.I. 2009/56), art. 3(1), Sch. 1 para. 113(2)(a)

F23 Words in s. 219B(4) omitted (1.4.2009) by virtue of The Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009 (S.I. 2009/56), art. 3(1), Sch. 1 para. 113(2)(b)

F24 Words in s. 219B(5) substituted (1.4.2009) by The Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009 (S.I. 2009/56), art. 3(1), Sch. 1 para. 113(3)

F25 Words in s. 219B(6) substituted (1.4.2009) by The Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009 (S.I. 2009/56), art. 3(1), Sch. 1 para. 113(4)

220 Inspection of property. U.K.

(1) If the Board authorise any person to inspect any property for the purpose of ascertaining its value for the purposes of this Act, the person having the custody or possession of that property shall permit him to inspect it at such reasonable times as the Board may consider necessary.

(2) If any person wilfully delays or obstructs a person acting in pursuance of this section he shall be liable on summary conviction to a fine not exceeding level 1 on the standard scale F26 . . .

Textual Amendments

F26 Words in s. 220(2) repealed (5.11.1993) by 1993 c. 50, s. 1(1), Sch. 1 Pt. XIV Gp. 2.

220A Exchange of information with other countries. U.K.

F27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F27 S. 220A repealed (19.7.2006) by Finance Act 2006 (c. 25), s. 178, Sch. 26 Pt. 8(2)