Section 124G — Inheritance Tax Act 1984: 100% trust relief allowance (relevant property)

100% trust relief allowance (relevant property) 124G 1 This section applies for the purpose of determining the amount of the 100% trust relief allowance available in relation to an occasion on which tax is charged under section 64 or 65 in relation to a settlement (“the relevant settlement”) for the purposes of—

a section 104(1B) (business property relief),

and b section 116(1B) (agricultural property relief).

2 The 100% trust relief allowance available in relation to an occasion on which tax is charged under section 64 or 65 (“the relevant occasion”) in relation to the relevant settlement is equal to—

a the trust maximum allowance (see sections 124H and 124I) for the relevant occasion, less b the total amount by which the values charged on occasions on which tax was charged under section 64 or 65 in relation to the relevant settlement in the allowance period were treated as reduced as a result of section 104(1B) or 116(1B).

3 The allowance period means the period—

a beginning with—

i the first day of the second quarter in the period beginning with the date of the most recent ten-year anniversary (within the meaning of Chapter 3 of Part 3) of the relevant settlement, or ii if there has not yet been a ten-year anniversary of the relevant settlement, the first day of the second quarter in the period beginning with the date on which the settlement commenced, and b ending with the day before the relevant occasion occurred.

4 But where—

a more than one conditionally relievable occasion occurs on the same day, and b the sum of the potentially relievable values in relation to those occasions exceeds the amount of the 100% trust relief allowance that would have been available in relation to a conditionally relievable occasion occurring on that same day, if no other such occasion had occurred on that day, the 100% trust relief allowance available in relation to those occasions is to be determined under subsection (5) (instead of under subsection (2)).

5 The 100% trust relief allowance available in relation to each of those occasions is the amount given by multiplying—

a the amount given by dividing the potentially relievable value in relation to that occasion by the sum of the potentially relievable values in relation to each of those occasions, by b the amount of the 100% trust relief allowance that would have been available in relation to a conditionally relievable occasion occurring on that same day, if no other such occasion had occurred on that day.

6 For the purposes of this section—

a a “ conditionally relievable occasion ” means an occasion on which—

i tax is charged under section 64 or 65 in relation to the relevant settlement, and ii section 104(1B) or 116(1B) would apply to reduce the value charged if there were an amount of the 100% trust relief allowance available in relation to it, and b the potentially relievable value, in relation to an occasion on which tax is charged under section 64 or 65, is so much of the value as otherwise would have been charged on that occasion as would be treated as reduced as a result of section 104(1B) or 116(1B) if the 100% trust relief allowance available in relation to it were unlimited.