Section 267ZD — Inheritance Tax Act 1984: Further provision about elections under section 267ZC

Further provision about elections under section 267ZC 267ZD 1 An election under section 267ZC—

a must be made by notice in writing to HMRC, and b has effect from such date as is, in accordance with subsection (2), specified in the notice.

2 The date specified in a notice under subsection (1)(a) (“ the specified date ”) must—

a be after 5 April 2025, b be within the period of 7 years ending with—

i in the case of a lifetime election, the date on which the election is made;

ii in the case of a death election, the date of the deceased's death, and c meet the condition in subsection (3).

3 The condition is that—

a in the case of a lifetime election—

i the person making the election was, on the specified date, married to or in a civil partnership with the spouse or civil partner, and ii the spouse or civil partner was, on the specified date, a long-term UK resident;

b in the case of a death election—

i the person who is, by virtue of the election, to be treated as a long-term UK resident was, on the specified date, married to or in a civil partnership with the deceased, and ii the deceased was, on the specified date, a long-term UK resident.

4 A death election may only be made within—

a the period of 2 years beginning with the date of the deceased’s death, or b such longer period as an officer of Revenue and Customs may in the particular case allow.

5 Subsection (6) applies if—

a an election is made under section 267ZC, b a disposition is made, or another event occurs, during the period beginning with the date on which the election first has effect and ending with the date on which the election is made, and c the effect of the election is that the disposition or event gives rise to a transfer of value.

6 This Act applies with the following modifications in relation to the transfer of value—

a subsections (1) and (6)(c) of section 216 (delivery of accounts) have effect as if the period specified in subsection (6)(c) of that section were the period of 12 months from the end of the month in which the election is made, and b sections 226 (payment: general rules) and 233 (interest on unpaid tax) have effect as if the transfer were made at the time when the election is made.

7 An election under section 267ZC cannot be revoked.

8 If a person who made an election under section 267ZC is, for a period of 10 successive tax years beginning after the date on which the election is made, not resident in the United Kingdom, the election ceases to have effect at the end of that period.

9 For the purposes of this section— “ death election ” means an election made under section 267ZC in circumstances where Condition B in subsection (4) of that section is met; “ lifetime election ” means any other election made under section 267ZC.