Finance Act 2012

The portion treated as satisfied U.K.

4 (1) The portion of N's tax liability for a relevant tax year that is to be treated as satisfied is an amount equal to the smaller of— U.K.

(a) the tax reduction figure allocated to that tax year, and

(b) the amount of N's tax liability for that tax year less any portion of that amount that is treated as satisfied in consequence of any qualifying gift made by N on a previous occasion.

(2) The amount determined under sub-paragraph (1) may be nil.

(3) The tax reduction figure allocated to a tax year is such part of the total tax reduction figure as is expressed in the agreed terms to be allocated to that tax year.

(4) The figures allocated to the relevant tax years must in total add up to no more than the total tax reduction figure.

(5) “The total tax reduction figure” is 30% of the value set out in the agreed terms as the agreed value of the property forming the subject of the qualifying gift.

(6) The Treasury may by order substitute a different percentage for the percentage specified for the time being in sub-paragraph (5).