F1SCHEDULE 1AGifts to charities etc: tax charged at lower rate
Election to merge parts of the estate
7
1
An election may be made under this paragraph if, for a component of the estate, the donated amount is at least 10% of the baseline amount.
2
That component is referred to as “the qualifying component”.
3
The effect of the election is that the qualifying component and one or more eligible parts of the estate (as specified in the election) are to be treated for the purposes of this Schedule as if they were a single component.
4
Accordingly, if the donated amount for that deemed single component is at least 10% of the baseline amount for it, the property in that component is to be included in the part of TP that qualifies for the lower rate of tax.
5
In relation to the qualifying component—
a
each one of the other two components of the estate is an “eligible part” of the estate, and
b
all the property that forms part of the estate by virtue of section 102(3) of the Finance Act 1986 (gifts with reservation) is also an “eligible part” of the estate.
6
The election must be made by all those who are appropriate persons with respect to the qualifying component and each of the eligible parts to be treated as a single component.
7
“Appropriate persons” means—
a
with respect to the survivorship component, all those to whom the property in that component passes on D's death (or, if they have subsequently died, their personal representatives),
b
with respect to the settled property component, the trustees of all the settled property in that component,
c
with respect to the general component, all the personal representatives of D or, if there are none, all those who are liable for the tax attributable to the property in that component, and
d
with respect to property within paragraph (b) of sub-paragraph (5), all those in whom the property within that paragraph is vested when the election is to be made.
Sch. 1A inserted (with effect in accordance with Sch. 33 para. 10(1) of the amending Act) by Finance Act 2012 (c. 14), Sch. 33 para. 1