xmlns:atom="http://www.w3.org/2005/Atom" xmlns:atom="http://www.w3.org/2005/Atom"
Textual Amendments
F1Sch. 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
5U.K.The baseline amount, for a component of the estate, is the amount calculated in accordance with the following steps—
Step 1 Determine the part of the value transferred by the chargeable transfer that is attributable to property in that component.
Step 2 Deduct from the amount determined under Step 1 the appropriate proportion of the available nil-rate band.
“The appropriate proportion” is a proportion equal to the proportion that the amount determined under Step 1 bears to the value transferred by the chargeable transfer as a whole.
“The available nil-rate band” is the amount (if any) by which—
the nil-rate band maximum (increased, where applicable, in accordance with section 8A), exceeds
the sum of the values transferred by previous chargeable transfers made by D in the period of 7 years ending with the date of the relevant transfer.
Step 3 Add to the amount determined under Step 2 an amount equal to so much of the value transferred by the relevant transfer as (in total) is attributable to property that—
forms part of that component, and
is property in relation to which section 23(1) applies.
The result is the baseline amount for that component.]