Inheritance Tax Act 1984
Sections and provisions with full text and the judgments that cite each one.
Section 1 — Charge on transfers.
Charge on transfers. 1 Inheritance tax shall be charged on the value transferred by a chargeable transfer.
Section 2 — Chargeable transfers and exempt transfers.
Chargeable transfers and exempt transfers. 2 1 A chargeable transfer is a transfer of value which is made by an individual but is not (by virtue of Part II of this Act or any other enactment) an…
Section 3 — Transfers of value.
Transfers of value. 3 1 Subject to the following provisions of this Part of this Act, a transfer of value is a disposition made by a person (the transferor) as a result of which the value of his…
Section 3A — Potentially exempt transfers.
Potentially exempt transfers. 3A 1 Any reference in this Act to a potentially exempt transfer is a reference to a transfer of value— a which is made by an individual on or after 18th March 1986 but…
Section 4 — Transfers on death.
Transfers on death. 4 1 On the death of any person tax shall be charged as if, immediately before his death, he had made a transfer of value and the value transferred by it had been equal to the…
Section 5 — Meaning of estate.
Meaning of estate. 5 1 For the purposes of this Act a person’s estate is the aggregate of all the property to which he is beneficially entitled, except that— a the estate of a person— i does not…
Section 6 — Excluded property.
Excluded property. 6 1 Property situated outside the United Kingdom is excluded property if the person beneficially entitled to it is an individual who is not a long-term UK resident . 1A A holding…
Section 6A — “Long-term UK resident”: individuals
“Long-term UK resident”: individuals 6A 1 For the purposes of this Act, an individual is a “long-term UK resident” at all times in a tax year if they were UK resident for at least 10 of the previous…
Section 6B — “Long-term UK resident”: young persons
“Long-term UK resident”: young persons 6B 1 In the application of section 6A(1) for the purpose of determining whether a young person is a long-term UK resident at any time in a tax year (“the…
Section 6C — “Long-term UK resident”: bodies corporate
“Long-term UK resident”: bodies corporate 6C For the purposes of this Act, a body corporate is a “long-term UK resident” at all times in a tax year if the body— a is incorporated in the United…
Section 7 — Rates.
Rates. 7 1 Subject to subsections (2), (4) and (5) below and to section 8D and Schedule 1A the tax charged on the value transferred by a chargeable transfer made by any transferor shall be charged at…
Section 7A
7A In this Schedule “ relevant UK property ” means— a UK agricultural property, or b a UK residential property interest.
Section 7B
7B 1 In this Schedule “ UK agricultural property ” means agricultural land or pasture in the United Kingdom and includes— a woodland and any building used in connection with the intensive rearing of…
Section 8 — Indexation of rate bands.
Indexation of rate bands. 8 1 If the consumer prices index for the month of September in any year is higher than it was for the previous September , then, unless Parliament otherwise determines,…
Section 8A — Transfer of unused nil-rate band between spouses and civil partners
Transfer of unused nil-rate band between spouses and civil partners 8A 1 This section applies where— a immediately before the death of a person (a “deceased person”), the deceased person had a spouse…
Section 8FA — Downsizing addition: entitlement: low-value death interest in home
Downsizing addition: entitlement: low-value death interest in home 8FA 1 There is entitlement to a downsizing addition in calculating the person's residence nil-rate amount if each of conditions A to…
Section 8HA — Qualifying former residential interest”: interests in possession
Qualifying former residential interest”: interests in possession 8HA 1 This section applies for the purposes of determining whether certain interests may be, or be included in, a qualifying former…
Section 8B — Claims under section 8A
Claims under section 8A 8B 1 A claim under section 8A above may be made— a by the personal representatives of the survivor within the permitted period, or b (if no claim is so made) by any other…
Section 8FB — Downsizing addition: entitlement: no residential interest at death
Downsizing addition: entitlement: no residential interest at death 8FB 1 There is also entitlement to a downsizing addition in calculating the person's residence nil-rate amount if each of conditions…
Section 8C — Section 8A and subsequent charges
Section 8A and subsequent charges 8C 1 This section applies where— a the conditions in subsection (1)(a) and (b) of section 8A above are met, and b after the death of the deceased person, tax is…
Section 8FC — Downsizing addition: effect: section 8E case
Downsizing addition: effect: section 8E case 8FC 1 Subsection (2) applies if— a as a result of section 8FA, there is entitlement to a downsizing addition in calculating the person's residence…
Section 8D — Extra nil-rate band on death if interest in home goes to descendants etc
Extra nil-rate band on death if interest in home goes to descendants etc 8D 1 Subsections (2) and (3) apply for the purpose of calculating the amount of the charge to tax under section 4 on a…
Section 8FD — Downsizing addition: effect: section 8F case
Downsizing addition: effect: section 8F case 8FD 1 This section applies if— a as a result of section 8FA or 8FB, there is entitlement to a downsizing addition in calculating the person's residence…
Section 8E — Residence nil-rate amount: interest in home goes to descendants etc
Residence nil-rate amount: interest in home goes to descendants etc 8E 1 Subsections (2) to (7) apply if— a the person's estate immediately before the person's death includes a qualifying residential…
Section 8FE — Calculation of lost relievable amount
Calculation of lost relievable amount 8FE 1 This section is about how to calculate the person's lost relievable amount for the purposes of sections 8FA(8) and 8FB(7). 2 For the purposes of this…
Section 8F — Residence nil-rate amount: no interest in home goes to descendants etc
Residence nil-rate amount: no interest in home goes to descendants etc 8F 1 Subsections (2) and (3) apply if the person's estate immediately before the person's death— a does not include a qualifying…
Section 8G — Meaning of “brought-forward allowance”
Meaning of “brought-forward allowance” 8G 1 This section is about the amount of the brought-forward allowance (see section 8D(5)(f)) for a person (“P”) who dies on or after 6 April 2017. 2 In this…
Section 8H — Meaning of “qualifying residential interest” , “qualifying former residential interest” and “residential property interest”
Meaning of “qualifying residential interest” , “qualifying former residential interest” and “residential property interest” 8H 1 This section applies for the purposes of sections 8E to 8FE and…
Section 8J — Meaning of “inherited”
Meaning of “inherited” 8J 1 This section explains for the purposes of sections 8E , 8F, 8FA, 8FB and 8M whether a person (“B”) inherits, from a person who has died (“D”), property which forms part of…
Section 8K — Meaning of “closely inherited”
Meaning of “closely inherited” 8K 1 In relation to the death of a person (“D”), something is “ closely inherited ” for the purposes of sections 8E , 8F, 8FA, 8FB and 8M if it is inherited for those…
Section 8L — Claims for brought-forward allowance and downsizing addition
Claims for brought-forward allowance and downsizing addition 8L 1 A claim for brought-forward allowance for a person (see section 8G) or for a downsizing addition for a person (see sections 8FA to…
Section 8M — Residence nil-rate amount: cases involving conditional exemption
Residence nil-rate amount: cases involving conditional exemption 8M 1 This section applies where— a a person (“D”) dies on or after 6 April 2017, b ignoring the application of this section, D's…
Section 9 — Transitional provisions on reduction of tax.
Transitional provisions on reduction of tax. 9 The transitional provisions in Schedule 2 to this Act shall have effect in relation to any enactment by virtue of which tax is reduced by the…
Section 10 — Dispositions not intended to confer gratuitous benefit.
Dispositions not intended to confer gratuitous benefit. 10 1 A disposition is not a transfer of value if it is shown that it was not intended, and was not made in a transaction intended, to confer…
Section 11 — Dispositions for maintenance of family.
Dispositions for maintenance of family. 11 1 A disposition is not a transfer of value if it is made by one party to a marriage or civil partnership in favour of the other party or of a child of…
Section 12 — Dispositions allowable for income tax or conferring benefits under pension scheme .
Dispositions allowable for income tax or conferring benefits under pension scheme . 12 1 A disposition made by any person is not a transfer of value if it is allowable in computing that person’s…
Section 12A — Pension drawdown fund not used up: no deemed disposition
Pension drawdown fund not used up: no deemed disposition 12A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Section 13 — Dispositions by close companies for benefit of employees.
Dispositions by close companies for benefit of employees. 13 1 A disposition of property made to trustees by a close company whereby the property is to be held on trusts of the description specified…
Section 13A — Dispositions by close companies to employee-ownership trusts
Dispositions by close companies to employee-ownership trusts 13A 1 A disposition of property made to trustees by a close company (“C”) whereby the property is to be held on trusts of the description…
Section 14 — Waiver of remuneration.
Waiver of remuneration. 14 1 Subject to subsection (2) below, the waiver or repayment of an amount of remuneration is not a transfer of value if, apart from the waiver or repayment, that amount would…
Section 15 — Waiver of dividends.
Waiver of dividends. 15 A person who waives any dividend on shares of a company within twelve months before any right to the dividend has accrued does not by reason of the waiver make a transfer of…
Section 16 — Grant of tenancies of agricultural property.
Grant of tenancies of agricultural property. 16 1 The grant of a tenancy of agricultural property in the United Kingdom ... for use for agricultural purposes is not a transfer of value by the grantor…
Section 17 — Changes in distribution of deceased’s estate, etc.
Changes in distribution of deceased’s estate, etc. 17 None of the following is a transfer of value— a a variation or disclaimer to which section 142(1) below applies; b a transfer to which section…
Section 18 — Transfers between spouses or civil partners .
Transfers between spouses or civil partners . 18 1 A transfer of value is an exempt transfer to the extent that the value transferred is attributable to property which becomes comprised in the estate…
Section 19 — Annual exemption.
Annual exemption. 19 1 Transfers of value made by a transferor in any one year are exempt to the extent that the values transferred by them (calculated as values on which no tax is chargeable) do not…
Section 20 — Small gifts.
Small gifts. 20 1 Transfers of value made by a transferor in any one year by outright gifts to any one person are exempt if the values transferred by them (calculated as values on which no tax is…
Section 21 — Normal expenditure out of income.
Normal expenditure out of income. 21 1 A transfer of value is an exempt transfer if, or to the extent that, it is shown— a that it was made as part of the normal expenditure of the transferor, and b…
Section 22 — Gifts in consideration of marriage or civil partnership .
Gifts in consideration of marriage or civil partnership . 22 1 Transfers of value made by gifts in consideration of marriage or civil partnership are exempt to the extent that the values transferred…
Section 23 — Gifts to charities or registered clubs .
Gifts to charities or registered clubs . 23 1 Transfers of value are exempt to the extent that the values transferred by them are attributable to property which is given to charities or registered…
Section 24 — Gifts to political parties.
Gifts to political parties. 24 1 Transfers of value are exempt to the extent that the values transferred by them— a are attributable to property which becomes the property of a political party…