Inheritance Tax Act 1984

234 Interest on instalments. U.K.

(1) Where tax payable on the value transferred by a chargeable transfer—

(a) is payable by instalments under section 227 above and is attributable to the value of any shares, securities, business or interest in a business, or to value treated as reduced under Chapter II of Part V of this Act, or

(b) is payable by instalments under section 229 above,

it shall, for the purposes of any interest to be added to each instalment, be treated as carrying interest from the date at which the instalment is payable.

(2) Subsection (1) above shall not apply to tax attributable to the value of shares or securities of a company falling within paragraph (a) of subsection (3) below (not being tax attributable to value treated as reduced under Chapter II of Part V of this Act) unless it also falls within paragraph (b) or (c) of that subsection.

(3) The companies referred to in subsection (2) above are—

(a) any company whose business consists wholly or mainly of one or more of the following, that is to say, dealing in securities, stocks or shares, land or buildings, or making or holding investments;

(b) any company whose business consists wholly or mainly in being a holding company ([F1 as defined in section [F2 1159 of and Schedule 6 to]] the [F3 Companies Act [F4 2006]]) of one or more companies not falling within paragraph (a) above;

[F5 (c) any company whose business is wholly that of a market maker or is that of a discount house and (in either case) is carried on in the United Kingdom.]

[F6 (4) In this section “market maker” means a person who—

(a) holds himself out at all normal times in compliance with the rules of The Stock Exchange as willing to buy and sell securities, stocks or shares at a price specified by him, and

(b) is recognised as doing so by the Council of The Stock Exchange.]

Textual Amendments

F1 Companies Act 1989 s. 144(4)and Sch. 18 para. 30(4)with effect from the appointed day—on and after 1November 1990 (S.I. 1990 No. 1392).Originally

“within the meaning of”.

F2 Words in s. 234(3)(b) substituted (1.10.2009) by The Companies Act 2006 (Consequential Amendments) (Taxes and National Insurance) Order 2009 (S.I. 2009/1890), art. 4(1)(f)

F3 Companies Consolidation (Consequential Provisions) Act 1985 (c. 9, SIF 27), Sch. 2,with effect from 1July 1985.Originally

“Companies Act 1948”.

F4 Words in s. 234(3)(b) substituted (1.10.2009) by The Companies Act 2006 (Consequential Amendments) (Taxes and National Insurance) Order 2009 (S.I. 2009/1890), art. 4(1)(f)

F5 Finance Act 1986 s. 107(1),in relation to events on or after 27October 1986“the day of The Stock Exchange reforms”—(as defined in s. 106(8)and s. 107(8)).Originally

“(c) any company whose business is that of a jobber (as defined in section 477 of the Taxes Act) or discount house and is carried on in the United Kingdom.”

F6 Finance Act 1986 s. 107(2),in relation to events on or after 27October 1986“the day of The Stock Exchange reforms”—(as defined in s. 106(8)and s. 107(8)).

Modifications etc. (not altering text)

C1 S. 234(4) amended (6.1.1993) by S.I. 1992/3181, reg.4 (as amended (1.12.2001) by S.I. 2001/3629, art. 135)