Section 153ZA — Inheritance Tax Act 1984: Qualifying payments

Qualifying payments 153ZA 1 This section applies where a qualifying payment has at any time been received by a person (“P”), or by the personal representatives of P.

2 The tax chargeable on the value transferred by the transfer made on P's death (the “value transferred”) is to be reduced by an amount equal to—

a the relevant percentage of the amount of the qualifying payment, or b if lower, the amount of tax that would, apart from this section, be chargeable on the value transferred.

3 In subsection (2) “ relevant percentage ” means the percentage specified in the last row of the third column of the Table in Schedule 1.

4 For the purposes of this section, a “qualifying payment” is a payment that meets Condition A, B or C.

5 Condition A is that the payment—

a is of a kind specified in Part 1 of Schedule 5A, and b is made to a person, or the personal representatives of a person, who was—

i a victim of National-Socialist persecution, or ii the spouse or civil partner of a person within sub-paragraph (i).

6 Condition B is that the payment is of a kind listed in Part 2 of Schedule 5A.

7 Condition C is that the payment—

a is of a kind specified in regulations made by the Treasury, and b is made to a person, or the personal representatives of a person, who was—

i held as a prisoner of war, or a civilian internee, during the Second World War, or ii the spouse or civil partner of a person within sub-paragraph (i).

8 The Treasury may by regulations add a payment of a specified kind to the list in Part 1 of Schedule 5A. 8A Regulations under this section may have effect in relation to deaths occurring before the regulations are made.

9 Regulations under this section are to be made by statutory instrument.

10 A statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of the House of Commons.