Inheritance Tax Act 1984

[F162BSame day additions: exceptionsU.K.

(1)There is not a same-day addition for the purposes of this Chapter if any of the following conditions is met—

(a)immediately after the transfer of value mentioned in section 62A(1)(a) all the property comprised in settlement A was held for charitable purposes only without limit of time (defined by a date or otherwise),

(b)immediately after the transfer of value mentioned in section 62A(1)(b) all the property comprised in settlement B was so held,

(c)either or each of settlement A and settlement B is a protected settlement (see section 62C), and

(d)the transfer of value, or either or each of the transfers of value, mentioned in section 62A(1)(a) and (b)—

(i)results from the payment of a premium under a contract of life insurance the terms of which provide for premiums to be due at regular intervals of one year or less throughout the contract term, or

(ii)is made to fund such a payment.

(2)If the transfer of value, or each of the transfers of value, mentioned in section 62A(1) is not the transfer of value under section 4 on the settlor's death, there is a same-day addition for the purposes of this Chapter only if conditions A and B are met.

(3)Condition A is that—

(a)the difference between the two values mentioned in section 62A(1)(a) exceeds £5,000, or

(b)in a case where there has been more than one transfer of value within section 62A(1)(a) on the same day, the difference between—

(i)the value of the property comprised in settlement A immediately before the first of those transfers, and

(ii)the value of the property comprised in settlement A immediately after the last of those transfers,

exceeds £5,000.

(4)Condition B is that—

(a)the difference between the two values mentioned in section 62A(1)(b) exceeds £5,000, or

(b)in a case where there has been more than one transfer of value within section 62A(1)(b), the difference between—

(i)the value of the property comprised in settlement B immediately before the first of those transfers, and

(ii)the value of the property comprised in settlement B immediately after the last of those transfers,

exceeds £5,000.]

Textual Amendments

F1Ss. 62A-62C inserted (with effect in accordance with Sch. 1 para. 7 of the amending Act) by Finance (No. 2) Act 2015 (c. 33), Sch. 1 para. 2