Inheritance Tax Act 1984
Sections and provisions with full text and the judgments that cite each one.
Section 24A — Gifts to housing associations.
Gifts to housing associations. 24A 1 A transfer of value is exempt to the extent that the value transferred by it is attributable to land in the United Kingdom given to a body falling within…
Section 25 — Gifts for national purposes, etc.
Gifts for national purposes, etc. 25 1 A transfer of value is an exempt transfer to the extent that the value transferred by it is attributable to property which becomes the property of a body within…
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Section 26A — Potentially exempt transfer of property subsequently held for national purposes etc.
Potentially exempt transfer of property subsequently held for national purposes etc. 26A A potentially exempt transfer which would (apart from this section) have proved to be a chargeable transfer…
Section 27 — Maintenance funds for historic buildings, etc.
Maintenance funds for historic buildings, etc. 27 1 Subject to subsection (1A) below, a transfer of value is an exempt transfer to the extent that the value transferred by it is attributable to…
Section 28 — Employee trusts.
Employee trusts. 28 1 A transfer of value made by an individual who is beneficially entitled to shares in a company is an exempt transfer to the extent that the value transferred is attributable to…
Section 28A — Employee-ownership trusts
Employee-ownership trusts 28A 1 A transfer of value made by an individual who is beneficially entitled to shares in a company (“C”) is an exempt transfer to the extent that the value transferred is…
Section 29 — Loans—modifications of exemptions.
Loans—modifications of exemptions. 29 1 If or to the extent that a transfer of value is a disposition whereby the use of money or other property is allowed by one person to another (“the borrower”),…
Section 29A — Abatement of exemption where claim settled out of beneficiary’s own resources.
Abatement of exemption where claim settled out of beneficiary’s own resources. 29A 1 This section applies where— a apart from this section the transfer of value made on the death of any person is an…
Section 30 — Conditionally exempt transfers.
Conditionally exempt transfers. 30 1 A transfer of value is an exempt transfer to the extent that the value transferred by it is attributable to property— a which, on a claim made for the purpose, is…
Section 31 — Designation and undertakings.
Designation and undertakings. 31 1 The Treasury may designate under this section— a any relevant object which appears to the Board to be pre-eminent for its national, scientific, historic or artistic…
Section 32 — Chargeable events.
Chargeable events. 32 1 Where there has been a conditionally exempt transfer of any property, tax shall be charged under this section on the first occurrence after the transfer (or, if the transfer…
Section 32A — Associated properties.
Associated properties. 32A 1 For the purposes of this section the following properties are associated with each other, namely, a building falling within section 31(1)(c) above and (to the extent that…
Section 33 — Amount of charge under section 32.
Amount of charge under section 32. 33 1 Tax chargeable in respect of any property under section 32 or 32A above by reference to a chargeable event shall be charged— a on an amount equal to the value…
Section 34 — Reinstatement of transferor’s cumulative total.
Reinstatement of transferor’s cumulative total. 34 1 Where tax has become chargeable under section 32 or 32A above by reference to a chargeable event in respect of any property (“the relevant event”)…
Section 35 — Conditional exemption on death before 7th April 1976.
Conditional exemption on death before 7th April 1976. 35 1 Schedule 5 to this Act shall have effect with respect to certain cases where, by virtue of sections 31 to 34 of the Finance Act 1975, the…
Section 35A — Variation of undertakings.
Variation of undertakings. 35A 1 An undertaking given under section 30, 32 or 32A above or paragraph 5 of Schedule 5 to this Act may be varied from time to time by agreement between the Board and the…
Section 36 — Preliminary.
Preliminary. 36 Where any one or more of sections 18, 23 to 27 and 30 above apply in relation to a transfer of value but the transfer is not wholly exempt— a any question as to the extent to which it…
Section 37 — Abatement of gifts.
Abatement of gifts. 37 1 Where a gift would be abated owing to an insufficiency of assets and without regard to any tax chargeable, the gift shall be treated for the purposes of the following…
Section 38 — Attribution of value to specific gifts.
Attribution of value to specific gifts. 38 1 Such part of the value transferred shall be attributable to specific gifts as corresponds to the value of the gifts; but if or to the extent that the…
Section 39 — Attribution of value to residuary gifts.
Attribution of value to residuary gifts. 39 Such part only of the value transferred shall be attributed to gifts of residue or shares in residue as is not attributed under section 38 above to…
Section 39A — Operation of sections 38 and 39 in cases of business or agricultural relief.
Operation of sections 38 and 39 in cases of business or agricultural relief. 39A 1 Where any part of the value transferred by a transfer of value is attributable to— a the value of relevant business…
Section 40 — Gifts made separately out of different funds.
Gifts made separately out of different funds. 40 Where gifts taking effect on a transfer of value take effect separately out of different funds the preceding provisions of this Chapter shall be…
Section 41 — Burden of tax.
Burden of tax. 41 Notwithstanding the terms of any disposition— a none of the tax on the value transferred shall fall on any specific gift if or to the extent that the transfer is exempt with respect…
Section 42 — Supplementary.
Supplementary. 42 1 In this Chapter— “ gift ”, in relation to any transfer of value, means the benefit of any disposition or rule of law by which, on the making of the transfer, any property becomes…
Section 43 — Settlement and related expressions.
Settlement and related expressions. 43 1 The following provisions of this section apply for determining what is to be taken for the purposes of this Act to be a settlement, and what property is,…
Section 44 — Settlor.
Settlor. 44 1 In this Act “ settlor ”, in relation to a settlement, includes any person by whom the settlement was made directly or indirectly, and in particular (but without prejudice to the…
Section 45 — Trustee.
Trustee. 45 In this Act “ trustee ”, in relation to a settlement in relation to which there would be no trustees apart from this section, means any person in whom the settled property or its…
Section 46 — Interest in possession: Scotland.
Interest in possession: Scotland. 46 In the application of this Act to Scotland, any reference to an interest in possession in settled property is a reference to an interest of any kind under a…
Section 46A — Contract of life insurance entered into before 22nd March 2006 which on that day is settled property in which interest in possession subsists
Contract of life insurance entered into before 22nd March 2006 which on that day is settled property in which interest in possession subsists 46A 1 Subsections (2) and (4) below apply where— a a…
Section 46B — Contract of life insurance entered into before 22nd March 2006 which immediately before that day is property to which section 71 applies
Contract of life insurance entered into before 22nd March 2006 which immediately before that day is property to which section 71 applies 46B 1 Subsections (2) and (5) below apply where— a a…
Section 47 — Reversionary interest.
Reversionary interest. 47 In this Act “ reversionary interest ” means a future interest under a settlement, whether it is vested or contingent (including an interest expectant on the termination of…
Section 47A — Settlement power
Settlement power 47A In this Act “ settlement power ” means any power over, or exercisable (whether directly or indirectly) in relation to, settled property or a settlement.
Section 48 — Excluded property : reversionary interests and Treasury securities .
Excluded property : reversionary interests and Treasury securities . 48 1 A reversionary interest is excluded property unless— a it has at any time been acquired (whether by the person entitled to it…
Section 48A — Commencement of settlement
Commencement of settlement 48A In this Act any reference to the commencement of a settlement is to the time when property first becomes comprised in it.
Section 48ZA — Excluded property: property situated outside the UK etc
Excluded property: property situated outside the UK etc 48ZA 1 If property comprised in a settlement— a is situated outside the United Kingdom, or b is a holding in an authorised unit trust or a…
Section 49 — Treatment of interests in possession.
Treatment of interests in possession. 49 1 A person beneficially entitled to an interest in possession in settled property shall be treated for the purposes of this Act as beneficially entitled to…
Section 49A — Immediate post-death interest
Immediate post-death interest 49A 1 Where a person (“L”) is beneficially entitled to an interest in possession in settled property, for the purposes of this Chapter that interest is an “immediate…
Section 49B — Transitional serial interests
Transitional serial interests 49B Where a person is beneficially entitled to an interest in possession in settled property, for the purposes of this Chapter that interest is a “transitional serial…
Section 49C — Transitional serial interest: interest to which person becomes entitled during period 22nd March 2006 to 5th October 2008
Transitional serial interest: interest to which person becomes entitled during period 22nd March 2006 to 5th October 2008 49C 1 Where a person (“B”) is beneficially entitled to an interest in…
Section 49D — Transitional serial interest: interest to which person becomes entitled on death of spouse or civil partner on or after 6th October 2008
Transitional serial interest: interest to which person becomes entitled on death of spouse or civil partner on or after 6th October 2008 49D 1 Where a person (“E”) is beneficially entitled to an…
Section 49E — Transitional serial interest: contracts of life insurance
Transitional serial interest: contracts of life insurance 49E 1 Where— a a person (“C”) is beneficially entitled to an interest in possession in settled property (“the present interest”), and b on…
Section 50 — Interests in part, etc.
Interests in part, etc. 50 1 Where the person referred to in section 49(1) above is entitled to part only of the income (if any) of the property, the interest shall be taken to subsist in such part…
Section 51 — Disposal of interest in possession.
Disposal of interest in possession. 51 1 Where a person beneficially entitled to an interest in possession in settled property disposes of his interest the disposal— a is not a transfer of value, but…
Section 52 — Charge on termination of interest in possession.
Charge on termination of interest in possession. 52 1 Where at any time during the life of a person beneficially entitled to an interest in possession in settled property his interest comes to an…
Section 53 — Exceptions from charge under section 52.
Exceptions from charge under section 52. 53 1 Tax shall not be chargeable under section 52 above if the settled property is excluded property. 1A Tax shall not be chargeable under section 52 above…
Section 54 — Exceptions from charge on death
Exceptions from charge on death 54 1 Where a person is entitled to an interest in possession in settled property which on his death, but during the settlor’s life, reverts to the settlor, the value…
Section 54A — Special rate of charge where settled property affected by potentially exempt transfer.
Special rate of charge where settled property affected by potentially exempt transfer. 54A 1 If the circumstances fall within subsection (2) below, this section applies to any chargeable transfer…
Section 54B — Provisions supplementary to section 54A.
Provisions supplementary to section 54A. 54B 1 The death of the settlor, at any time after a chargeable transfer to which section 54A above applies, shall not increase the tax chargeable on the value…
Section 55 — Reversionary interest acquired by beneficiary.
Reversionary interest acquired by beneficiary. 55 1 Notwithstanding section 5(1) above, where a person entitled to an interest (whether in possession or not) in any settled property acquires a…