(This note is not part of the Regulations)
These Regulations replace the Capital Transfer Tax (Delivery of Accounts (No. 2) Regulations 1981 (S.I.1981/1440) with only drafting amendments. The Regulations dispense with the need to deliver an account of lifetime transfers where the total value of an individual’s transfers made in any one year does not exceed £10,000, and where his cumulative total does not exceed £40,000. The Regulations have effect in relation to lifetime transfers made on or after 1st April 1981.
The Regulations also dispense with the delivery of an account by trustees and discharge them from any liability to inheritance tax where the termination of an interest in possession in settled property is wholly covered by an annual or marriage gift exemption made available to the trustees.