Source: http://www.legislation.gov.uk/ukpga/1984/51/part/I
Timestamp: 2013-05-20 01:51:39
Document Index: 681604545

Matched Legal Cases: ['art. 5', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 3', 'art. 3', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 5', 'art. 5']

Skip to main contentSkip to navigationlegislation.gov.ukThe National ArchivesHelpSite MapAccessibilityContact UsHomeAbout UsBrowse LegislationNew LegislationChanges to LegislationSearch LegislationSearch LegislationTitle: (or keywords in the title)Year:Number:Type:All Legislation (excluding draft)All Primary Legislation UK Public General Acts UK Local Acts Acts of the Scottish Parliament Acts of the National Assembly for Wales Measures of the National Assembly for Wales Church Measures Acts of the Northern Ireland Assembly Acts of the Old Scottish Parliament Acts of the English Parliament Acts of the Old Irish Parliament Acts of the Parliament of Great Britain Northern Ireland Orders in Council Measures of the Northern Ireland Assembly Acts of the Northern Ireland ParliamentAll Secondary Legislation UK Statutory Instruments Wales Statutory Instruments Scottish Statutory Instruments Northern Ireland Statutory Rules Church Instruments UK Ministerial Orders UK Statutory Rules and OrdersAll Draft Legislation UK Draft Statutory Instruments Scottish Draft Statutory Instruments Northern Ireland Draft Statutory RulesAll Impact Assessments UK Impact AssessmentsSearchAdvanced SearchInheritance Tax Act 1984You are here:1984 c. 51PART ITable of ContentsContentMore ResourcesPrevious: IntroductionNext: PartPlain ViewPrint Options
Changes to legislation:There are outstanding changes not yet made by the legislation.gov.uk editorial team to Inheritance Tax Act 1984. Any changes that have already been made by the team appear in the content and are referenced with annotations.Changes to LegislationRevised legislation carried on this site may not be fully up to date. Changes and effects are recorded by our editorial team in lists which can be found in the ‘Changes to Legislation’ area. Where those effects have yet to be applied to the text of the legislation by the editorial team they are also listed alongside the legislation in the affected provisions. Use the ‘more’ link to open the changes and effects relevant to the provision you are viewing.Changes and effects yet to be applied to the whole Act, associated Parts and Chapters:Changes and effectsThis section lists the changes and effects yet to be applied to the whole Act, associated Parts and Chapters where applicable. This includes any insertions of whole new Parts, Chapters or provisions yet to be inserted into this Act. These effects are included in this view as they may be (but won’t necessarily be) relevant to the specific provision that you are viewing.Act modified by S.I. 2011/1502 art. 5Whole provisions yet to be inserted into this Act (including any effects on those provisions):s. 8A-8C inserted by 2008 c. 9 Sch. 4 para. 2s. 74A-74C inserted by 2012 c. 14 s. 210(3)s. 81A inserted by 2010 c. 13 s. 52(1)s. 141A inserted by 2012 c. 14 Sch. 32 para. 7s. 151D 151E inserted by 2008 c. 9 Sch. 28 para. 10s. 151D omitted by 2011 c. 11 Sch. 16 para. 48(e)s. 151E omitted by 2011 c. 11 Sch. 16 para. 48(f)s. 155(4) words substituted by 2012 c. 14 Sch. 37 para. 3(2)s. 155(5A)(5B) inserted by 2012 c. 14 Sch. 37 para. 3(3)s. 155(6) words inserted by 2012 c. 14 Sch. 37 para. 3(4)s. 223A-223I inserted by S.I. 2009/56 Sch. 1 para. 117s. 240A inserted by 2009 c. 10 Sch. 51 para. 12s. 271A inserted by 2008 c. 9 Sch. 29 para. 18(6)Sch. 1A inserted by 2012 c. 14 Sch. 32 para. 2Commencement Orders yet to be applied to the Inheritance Tax Act 1984:Commencement OrdersThis section lists the commencement orders yet to be applied to the whole Act. These effects are included in this view as they may be (but won’t necessarily be) relevant to the specific provision that you are viewing. Where applicable the commencement orders are listed under two headings, firstly those that bring some part of the Act you are viewing into force and secondly, those that bring into force legislation that affects some part of the legislation you are viewing. If you are viewing a prospective version or there is a prospective version available there may be commencement orders listed here that are relevant to the provision you are viewing.Commencement Orders bringing legislation that affects this Act into force:S.I. 2003/1725 art. 2(1) commences (2002 c. 9)S.I. 2006/1014 art. 2(a) Sch. 1 para. 11(r) commences (2005 c. 4)S.I. 2008/839 art. 2 commences (2007 c. 18)S.I. 2009/571 art. 2-5 commences (2008 c. 9)S.I. 2009/812 art. 3(a)(b) commences (2006 c. 52)S.I. 2009/1167 art. 3 4 commences (2006 c. 52)S.I. 2009/1604 art. 2 commences (2005 c. 4)S.I. 2009/3250 art. 2(h) commences (2007 c. 29)S.I. 2009/3345 art. 2 commences (2009 c. 23)S.I. 2010/862 art. 2 commences (2008 c. 17)S.I. 2010/867 art. 2 commences (2009 c. 10)PART IE+W+S+N.I. GENERAL Main charges and definitionsE+W+S+N.I.1 Charge on transfers.E+W+S+N.I.[F1Inheritance tax] shall be charged on the value transferred by a chargeable transfer.
Annotations:Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.Amendments (Textual)F1 See Finance Act 1986 s. 100(1)and (2)—for any liability to tax arising on and after 25July 1986any reference in the legislation to capital transfer tax has effect as a reference to inheritance tax.2 Chargeable transfers and exempt transfers.E+W+S+N.I.(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 exempt transfer.
(2)A transfer of value made by an individual and exempt only to a limited extent—
(a)is, if all the value transferred by it is within the limit, an exempt transfer, and
(3)Except where the context otherwise requires, references in this Act to chargeable transfers, to their making or to the values transferred by them shall be construed as including references to occasions on which tax is chargeable under Chapter III of Part III of this Act (apart from section 79), to their occurrence or to the amounts on which tax is then chargeable.
3 Transfers of value.E+W+S+N.I.(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 estate immediately after the disposition is less than it would be but for the disposition; and the amount by which it is less is the value transferred by the transfer.
(2)For the purposes of subsection (1) above no account shall be taken of the value of excluded property which ceases to form part of a person’s estate as a result of a disposition.
(3)[F2 Where the value of a person's estate is diminished, and the value—
is increased] by the first-mentioned person’s omission to exercise a right, he shall be treated for the purposes of this section as having made a disposition at the time (or latest time) when he could have exercised the right, unless it is shown that the omission was not deliberate.
(4)Except as otherwise provided, references in this Act to a transfer of value made, or made by any person, include references to events on the happening of which tax is chargeable as if a transfer of value had been made, or, as the case may be, had been made by that person; and “transferor” shall be construed accordingly.
Annotations:Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.Amendments (Textual)F2Words in s. 3(3) substituted (22.3.2006) by Finance Act 2006 (c. 25), s. 156, Sch. 20 paras. 7, 8[F33A Potentially exempt transfers.E+W+S+N.I.(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 [F4but before 22nd March 2006] ; and
(c)to the extent that it constitutes either a gift to another individual or a gift into an accumulation and maintenance trust or a disabled trust;
[F6(1A)Any reference in this Act to a potentially exempt transfer is also a reference to a transfer of value—
(a)which is made by an individual on or after 22nd March 2006,
(b)which, apart from this section, would be a chargeable transfer (or to the extent to which, apart from this section, it would be such a transfer), and
(c)to the extent that it constitutes—
(i)a gift to another individual,
(ii)a gift into a disabled trust, or
(iii)a gift into a bereaved minor's trust on the coming to an end of an immediate post-death interest.
(1B)Subsections (1) and (1A) above have effect subject to any provision of this Act which provides that a disposition (or transfer of value) of a particular description is not a potentially exempt transfer.]
(2)Subject to subsection (6) below, a transfer of value falls within subsection (1)(c) [F7 or (1A)(c)(i)] above, as a gift to another individual,—
(a)to the extent that the value transferred is attributable to property which, by virtue of the transfer, becomes comprised in the estate of that other individual, . . . F8, or
(b)so far as that value is not attributable to property which becomes comprised in the estate of another person, to the extent that, by virtue of the transfer, the estate of that other individual is increased, . . . F9
[F10(3A)Subject to subsection (6) below, a transfer of value falls within subsection (1A)(c)(ii) above to the extent that the value transferred is attributable to property which, by virtue of the transfer, becomes settled property to which section 89 below applies.
(3B)A transfer of value falls within subsection (1A)(c)(iii) above to the extent that the value transferred is attributable to settled property (whenever settled) that becomes property to which section 71A below applies in the following circumstances—
(a)under the settlement, a person (“L”) is beneficially entitled to an interest in possession in the settled property,
(b)the interest in possession is an immediate post-death interest,
(c)on or after 22nd March 2006, but during L's life, the interest in possession comes to an end,
(d)L is beneficially entitled to the interest in possession immediately before it comes to an end, and
(e)on the interest in possession coming to an end, the property—
(i)continues to be held on the trusts of the settlement, and
(ii)becomes property to which section 71A below applies.]
(6)Where, under any provision of this Act [F11other than section 52] tax is in any circumstances to be charged as if a transfer of value had been made, that transfer shall be taken to be a transfer which is not a potentially exempt transfer.]
[F12(7)In the application of this section to an event on the happening of which tax is chargeable under section 52 below, the reference in subsection (1)(a) [F13or (1A)(a)] above to the individual by whom the transfer of value is made is a reference to the person who, by virtue of section 3(4) above, is treated as the transferor.]
Annotations:Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.Amendments (Textual)F3Finance Act 1986 Sch. 19 para. 1,in relation to transfers of value made on or after 18March 1986.F4Words in s. 3A(1)(a) inserted (22.3.2006) by Finance Act 2006 (c. 25), s. 156, Sch. 20 paras. 7, 9(2)F5Words in s. 3A(1) repealed (22.3.2006) by Finance Act 2006 (c. 25), s. 178, {Sch. 26 Pt. 6 Note 1}F6S. 3A(1A)(1B) inserted (22.3.2006) by Finance Act 2006 (c. 25), s. 156, Sch. 20 paras. 7, 9(3)F7Words in s. 3A(2) inserted (22.3.2006) by Finance Act 2006, s. 156, Sch. 20 paras. 7, {9(4)}F8 Repealed by Finance Act 1987 (No. 2) s. 96(2)(a)and Sch. 9 Part III,with effect from 17March 1987.F9 Repealed by Finance Act 1987 (No. 2) s. 96(2)(b)and Sch. 9 Part IIIwith effect from 17March 1987.F10S. 3A(3A)(3B) inserted (22.3.2006) by Finance Act 2006 (c. 25), s. 156, Sch. 20 paras. 7, 9(5)F11Finance Act 1987 (No. 2) s. 96(2)(c),in relation to transfers of value made on or after 17March 1987.F12Finance Act 1987 (No. 2) s. 96(1), (3),in relation to transfers of value made on or after 17March 1987.F13Words in s. 3A(7) inserted (22.3.2006) by Finance Act 2006 (c. 25), s. 156, Sch. 20 paras. 7, 9(6)4 Transfers on death.E+W+S+N.I.(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 value of his estate immediately before his death.
(2)For the purposes of this section, where it cannot be known which of two or more persons who have died survived the other or others they shall be assumed to have died at the same instant.
5 Meaning of estate.E+W+S+N.I.(1)For the purposes of this Act a person’s estate is the aggregate of all the property to which he is beneficially entitled, [F14 except that—
(a)the estate of a person—
(i)does not include an interest in possession in settled property to which section 71A or 71D below applies, and
(ii)does not include an interest in possession that falls within subsection (1A) below, and
(b)the] estate of a person immediately before his death does not include excluded property.
[F15(1A)An interest in possession falls within this subsection if—
(a)it is an interest in possession in settled property,
(b)the settled property is not property to which section 71A or 71D below applies,
(c)the person is beneficially entitled to the interest in possession,
(d)the person became beneficially entitled to the interest in possession on or after 22nd March 2006, and
(e)the interest in possession is—
(iii)not a transitional serial interest.]
(2)A person who has a general power which enables him, or would if he were sui juris enable him, to dispose of any property other than settled property, or to charge money on any property other than settled property, shall be treated as beneficially entitled to the property or money; and for this purpose “general power” means a power or authority enabling the person by whom it is exercisable to appoint or dispose of property as he thinks fit.
(3)In determining the value of a person’s estate at any time his liabilities at that time shall be taken into account, except as otherwise provided by this Act.
(4)The liabilities to be taken into account in determining the value of a transferor’s estate immediately after a transfer of value include his liability for [F16inheritance tax] on the value transferred but not his liability (if any) for any other tax or duty resulting from the transfer.
(5)Except in the case of a liability imposed by law, a liability incurred by a transferor shall be taken into account only to the extent that it was incurred for a consideration in money or money’s worth.
Annotations:Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.Amendments (Textual)F14Words in s. 5(1) substituted (22.3.2006) by Finance Act 2006 (c. 25), s. 156, Sch. 20 para. 7, 10(2)F15S. 5(1A) inserted (22.3.2006) by Finance Act 2006 (c. 25), s. 156, Sch. 20 paras. 7, 10(3)F16 See Finance Act 1986 s. 100(1)and (2)—for any liability to tax arising on and after 25July 1986any reference in the legislation to capital transfer tax has effect as a reference to inheritance tax.6 Excluded property.E+W+S+N.I.(1)Property situated outside the United Kingdom is excluded property if the person beneficially entitled to it is an individual domiciled outside the United Kingdom.
[F17(1A)A holding in an authorised unit trust and a share in an open-ended investment company is excluded property if the person beneficially entitled to it is an individual domiciled outside the United Kingdom.]
(2)Where securities have been issued by the Treasury subject to a condition authorised by section 22 of the M1Finance (No. 2) Act 1931 (or section 47 of the M2Finance (No. 2) Act 1915) for exemption from taxation so long as the securities are in the beneficial ownership of persons [F18of a description specified in the condition], the securities are excluded property if they are in the beneficial ownership of such a person.
(e)a [F19certified SAYE savings arrangement] within the meaning of [F20section 703(1) of the Income Tax (Trading and Other Income) Act 2005] ;
(4)Property to which this subsection applies by virtue of section 155(1) below is excluded property.
Annotations:Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.Amendments (Textual)F17S. 6(1A) inserted (with effect as stated in s. 186(8) of the amending Act) by Finance Act 2003 (c. 14), s. 186(2)F18Words in s. 6(2) substituted (29.4.1996 with effect as mentioned in s. 154(9) of the amending Act) by 1996 c. 8, s. 154(7), Sch. 28 para. 7 (with s. 154(5))F19Words in s. 6(3)(e) substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), ss. 882, 883, Sch. 1 para. 394(a) (with Sch. 2)F20Words in s. 6(3)(e) substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), ss. 882, 883, Sch. 1 para. 394(b) (with Sch. 2)Marginal CitationsM11931 c. 49. M21915 c. 89. RatesE+W+S+N.I.7 Rates.E+W+S+N.I.(1)[F21Subject to subsections (2), (4) and (5) below] the tax charged on the value transferred by a chargeable transfer made by any transferor shall be charged at the following rate or rates, that is to say—
(a)if the transfer is the first chargeable transfer made by that transferor in the period of [F22seven years] ending with the date of the transfer, at the rate or rates applicable to that value under the . . . F23 Table in Schedule 1 to this Act;
(b)in any other case, at the rate or rates applicable under that Table to such part of the aggregate of—
(i)that value, and
(ii)the values transferred by previous chargeable transfers made by him in that period,
as is the highest part of that aggregate and is equal to that value.
[F24(2)Except as provided by subsection (4) below, the tax charged on the value transferred by a chargeable transfer made before the death of the transferor shall be charged at one-half of the rate or rates referred to in subsection (1) above.]
(3)In [F25the Table] in Schedule 1 to this Act any rate shown in the third column is that applicable to such portion of the value concerned as exceeds the lower limit shown in the first column but does not exceed the upper limit (if any) shown in the second column.
[F26(4)Subject to subsection (5) below, subsection (2) above does not apply in the case of a chargeable transfer made at any time within the period of seven years ending with the death of the transferor but, in the case of a chargeable transfer made within that period but more than three years before the death, the tax charged on the value transferred shall be charged at the following percentage of the rate or rates referred to in subsection (1) above—
(5)If, in the case of a chargeable transfer made before the death of the transferor, the tax which would fall to be charged in accordance with subsection (4) above is less than the tax which would have been chargeable (in accordance with subsection (2) above) if the transferor had not died within the period of seven years beginning with the date of the transfer, subsection (4) above shall not apply in the case of that transfer.]
Annotations:Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.Amendments (Textual)F21Finance Act 1986 Sch. 19, para. 2(1)(a),with effect from 18March 1986.F22Finance Act 1986 Sch. 19, para. 2(1)(b),with effect from 18March 1986.Originally“ten years”.F23 Repealed by Finance Act 1986 s. 101(3)and Sch. 19, para. 2(1)(c),with effect from 18March 1986.F24Finance Act 1986 Sch. 19, para. 2(2),with effect from 18March 1986.Originally“(2) Except as otherwise provided, the first Table in Schedule 1 to this Act is the appropriate Table for a transfer made on or at any time within three years of the death of the transferor, and the second Table in that Schedule is the appropriate Table for any other transfer.”F25Finance Act 1986 Sch. 19, para. 2(3),with effect from 18March 1986.Originally“each of the Tables”.F26Finance Act 1986 Sch. 19, para. 2(4),with effect from 18March 1986.8 Indexation of rate bands.E+W+S+N.I.(1)If the retail prices index for the month of [F27September in 1993] or any later year is higher than it was for the [F27previous September], then, unless Parliament otherwise determines, section 7 above and Schedule 1 to this Act shall apply to chargeable transfers made on or after 6th April in the following year with the substitution of [F28a new Table for the Table] applying (whether by virtue of this section or otherwise) to earlier chargeable transfers.
(1A). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F29
(2)The new [F30Table] shall differ from the [F30Table] it replaces in that for each of the amounts specified in the first and second columns there shall be substituted amounts arrived at by increasing the previous amounts by the same percentage as the percentage increase in the retail prices index and, if the result is not a multiple of £1,000, rounding it up to the nearest amount which is such a multiple.
(3)The references in this section to the retail prices index are references to the general index of retail prices (for all items) published by the [F31Office for National Statistics]; and if that index is not published for a month of [F27September] those references shall be construed as references to any substituted index or index figures published by [F32that Office].
(4)The Treasury shall before 6th April [F271994] and each subsequent 6th April make an order specifying the amounts which by virtue of this section will be treated, in relation to chargeable transfers on or after that date, as specified in the [F33Table] in Schedule 1 to this Act; and any such order shall be made by statutory instrument.
Annotations:Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.Amendments (Textual)F27Words in s. 8(1)(3)(4) substituted (27.7.1993: the substituting section applying in relation to chargeble transfers made on or after 6.4.1994) by 1993 c. 34, s. 197(1)(2).F28Finance Act 1986 Sch. 19, para. 3(1),with effect from 18March 1986.Originally“new Tables for the Tables”.F29Finance Act 1986 Sch. 19, para. 3(2),with effect from 18March 1986.repealed by 1988, s. 136(3)and Sch.14, Part Xwith effect from 15March 1988.F30Finance Act 1986 Sch. 19, para. 3(3),with effect from 18March 1986.Originally“Tables”.F31Words in s. 8(3) substituted (1.4.1996) by S.I. 1996/273, art. 5(1), Sch. 2 para. 21(a)F32Words in s. 8(3) substituted (1.4.1996) by S.I. 1996/273, art. 5(1), Sch. 2 para. 21(b)F33Finance Act 1986 Sch. 19, para. 3(4),with effect from 18March 1986.Originally“Tables”.Modifications etc. (not altering text)C1S. 8(1) restricted (7.4.2005) by Finance Act 2005 (c. 7), s. 98(6)C2S. 8(1) excluded (19.7.2006) by Finance Act 2006 (c. 25), s. 155(5)C3S. 8 restricted (19.3.1997 with effect as mentioned in s. 93(2) of the amending Act) by 1997 c. 16, s. 93(2)C4S. 8(1) excluded (16.7.1992) by Finance (No. 2) Act 1992 (c. 48), s. 72(2).S. 8(1) excluded (27.7.1993) by 1993 c. 34, s. 196.S. 8(1) excluded (3.5.1994 with effect as mentioned in s. 246 of the amending Act) by 1994 c. 9, s. 246C5S. 8(1) restricted (24.7.2002) by 2002 c. 23, s. 118(2)9 Transitional provisions on reduction of tax.E+W+S+N.I.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 substitution of [F34a new Table] in Schedule 1.
Annotations:Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.Amendments (Textual)F34Finance Act 1986 Sch. 19, para. 4with effect from 18March 1986.Originally“new Tables”. Dispositions that are not transfers of valueE+W+S+N.I.10 Dispositions not intended to confer gratuitous benefit.E+W+S+N.I.(1)A disposition is not a transfer of value if it is shown that it was not indented, and was not made in a transaction intended, to confer any gratuitous benefit on any person and either—
(2)Subsection (1) above shall not apply to a sale of [F35unquoted shares or unquoted debentures] unless it is shown that the sale was at a price freely negotiated at the time of the sale or at a price such as might be expected to have been freely negotiated at the time of the sale.
“disposition” includes anything treated as a disposition by virtue of section 3(3) above;
“transaction” includes a series of transactions and any associated operations.
Annotations:Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.Amendments (Textual)F35Finance Act 1987 Sch. 8, para. 1,with effect from 17March 1987.Originally“shares or debentures not quoted on a recognised stock exchange”.11 Dispositions for maintenance of family.E+W+S+N.I.(1)A disposition is not a transfer of value if it is made by one party to a marriage [F36or civil partnership] in favour of the other party or of a child of either party and is—
(a)he attains the age of eighteen, or
(4)A disposition is not a transfer of value if it is made in favour of an illegitimate child of the person making the disposition and is for the maintenance, education or training of the child for a period ending not later than the year in which he attains the age of eighteen or, after attaining that age, ceases to undergo full-time education or training.
(5)Where a disposition satisfies the conditions of the preceding provisions of this section to a limited extent only, so much of it as satisfies them and so much of it as does not satisfy them shall be treated as separate dispositions.
“child” includes a step-child and an adopted child and “parent” shall be construed accordingly;
[F37“civil partnership”, in relation to a disposition made on the occasion of the dissolution or annulment of a civil partnership, and in relation to a disposition varying a disposition so made, includes a former civil partnership;]
“dependent relative” means in relation to any person—
(a)a relative of his, or of his spouse [F38or civil partner] , who is incapacitated by old age or infirmity from maintaining himself, or
(b)[F39his mother or father or his spouse's or civil partner's mother or father;]
“marriage”, in relation to a disposition made on the occasion of the dissolution or annulment of a marriage, and in relation to a disposition varying a disposition so made, includes a former marriage;
“year” means period of twelve months ending with 5th April.
Annotations:Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.Amendments (Textual)F36Words in s. 11(1) inserted (5.12.2005) by The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1(1), 4(2)F37S. 11(6): definition of "civil partnership" inserted (5.12.2005) by The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1(1), 4(3)(b)F38S. 11(6): words in definition of "dependent relative" inserted (5.12.2005) by The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1(1), 4(3)(a)(i)F39S. 11(6): words in definition of "dependent relative" substituted (5.12.2005 with effect in accordance with reg. 1(2) of the amending S.I.) by The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1(1), 4(3)(a)(ii)12 Dispositions allowable for income tax or conferring under pension scheme.E+W+S+N.I.(1)A disposition made by any person is not a transfer of value if it is allowable in computing that person’s profits or gains for the purposes of income tax or corporation tax or would be so allowable if those profits or gains were sufficient and fell to be so computed.
(2)Without prejudice to subsection (1) above, a disposition made by any person is not a transfer of value if [F40it is a contribution under a registered pension scheme or section 615(3) scheme in respect of an employee of the person making the disposition.]
[F41(2A)Subsection (2B) below applies where a person who is a member of a registered pension scheme, and who has not reached the age of 75, has omitted to exercise pension rights under the pension scheme and, if the words “(or latest time)” were omitted from subsection (3) of section 3 above,—
“relevant dependant”, in relation to a person, means a dependant (within the meaning given by paragraph 15 of Schedule 28 to that Act) who is the person's spouse or civil partner immediately before his death or someone who is financially dependent on the person at that time.]
(3)F42. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4)F42. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Annotations:Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.Amendments (Textual)F40Words in s. 12(2) substituted (6.4.2006) by Finance Act 2004 (c. 12), ss. 203(2)(a), 284 (with Sch. 36)F41S. 12(2A)-(2G) inserted (6.4.2006) by Finance Act 2006 (c. 25), s. 160, Sch. 22 paras. 2, 12F42S. 12(3)(4) repealed (6.4.2006) by Finance Act 2004 (c. 12), ss. 203(2)(b), 284, 326, Sch. 42 Pt. 3 (with Sch. 36)13 Dispositions by close companies for benefit of employees.E+W+S+N.I.(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 in section 86(1) below is not a transfer of value if the persons for whose benefit the trusts permit the property to be applied include all or most of either—
(a)the persons employed by or holding office with the company, or
(b)the persons employed by or holding office with the company or any one or more subsidiaries of the company.
(2)Subsection (1) above shall not apply if the trusts permit any of the property to be applied at any time (whether during any such period as is referred to in section 86(1) below or later) for the benefit of—
(a)a person who is a participator in the company making the disposition, or
(b)any other person who is a participator in any close company that has made a disposition whereby property became comprised in the same settlement, being a disposition which but for this section would have been a transfer of value, or
(c)any other person who has been a participator in any such company as is mentioned in paragraph (a) or (b) above at any time after, or during the ten years before, the disposition made by that company, or
(d)any person who is connected with any person within paragraph (a), (b) or (c) above.
(3)The participators in a company who are referred to in subsection (2) above do not include any participator who—
(b)on a winding-up of the company would not be entitled to 5 per cent. or more of its assets.
(4)In determining whether the trusts permit property to be applied as mentioned in subsection (2) above, no account shall be taken—
(a)of any power to make a payment which is the income of any person for any of the purposes of income tax, or would be the income for any of those purposes of a person not resident in the United Kingdom if he were so resident, or
(b)if the trusts are those of a profit sharing scheme approved under [F43Schedule 9 to the M3Taxes Act 1988], of any power to appropriate shares in pursuance of the scheme [F44; or].
[F44(c)if the trusts are those of [F45a share incentive plan approved under Schedule 2 to the Income Tax (Earnings and Pensions) Act 2003] , of any power to appropriate shares to, or acquire shares on behalf of, individuals under the plan.]
“close company” and “participator” have the same meanings as in Part IV of this Act;
“ordinary shares” means shares which carry either—
(b)a right to conversion into shares carrying such a right as is mentioned in paragraph (a) above,
“subsidiary” has [F46the meaning given by section 736 of] the [F47M4Companies Act 1985];
and references in subsections (2) and (3) above to a participator in a company shall, in the case of a company which is not a close company, be construed as references to a person who would be a participator in the company if it were a close company.
Annotations:Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.Amendments (Textual)F43 Substituted by Income and Corporation Taxes Act 1988 (c. 1. SIF 63:1), Sch. 29, para. 32.Originally“the Finance Act 1978”.F44S. 13(4)(c) and the word “or”immediately preceding it inserted (28.7.2000) by 2000 c. 17, s. 138(2)F45Words in s. 13(4)(c) substituted (with effect as mentioned in s. 723(1)(a)(b) (subject to Sch. 7) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), ss. 722, 723(1), Sch. 6 para. 151(1)(a)(2)F46Companies Act 1989 s. 144(4)and Sch. 18 para. 30(2),with effect from the appointed day—on and after 1November 1990 (S.I. 1990 No.1392).Originally“the same meaning as in”.F47Companies Consolidation (Consequential Provisions) Act 1985 (c. 9, SIF 27), Sch. 2,with effect from 1July 1985.Originally“Companies Act 1948”.Marginal CitationsM31988 c. 1. M41985 c. 6. 14 Waiver of remuneration.E+W+S+N.I.(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 [F48would be earnings, or would be treated as earnings, and would constitute employment income (see section 7(2)(a) or (b) of the Income Tax (Earnings and Pensions) Act 2003)] .
(2)Where, apart from the waiver or repayment, the amount of the remuneration would be allowable as a deduction in computing for the purposes of income tax or corporation tax the profits or gains or losses of the person by whom it is payable or paid, this section shall apply only if, by reason of the waiver or repayment, it is not so allowed or is otherwise brought into charge in computing those profits or gains or losses.
Annotations:Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.Amendments (Textual)F48Words in s. 14(1) substituted (with effect as mentioned in s. 723(1)(a)(b) (subject to Sch. 7) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), ss. 722, 723(1), Sch. 6 para. 15215 Waiver of dividends.E+W+S+N.I.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 value.
16 Grant of tenancies of agricultural property.E+W+S+N.I.(1)The grant of a tenancy of agricultural property in the United Kingdom, the Channel Islands or the Isle of Man for use for agricultural purposes is not a transfer of value by the grantor if he makes it for full consideration in money or money’s worth.
(2)Expressions used in subsection (1) above and in Chapter II of Part V of this Act have the same meaning in that subsection as in that Chapter.
17 Changes in distribution of deceased’s estate, etc.E+W+S+N.I.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 143 below applies;
(c)an election by a surviving spouse [F49or civil partner] under section 47A of the Administration of M5Estates Act 1925;
(d)the renunciation of a claim to legitim [F50or rights under section 131 of the Civil Partnership Act 2004] within the period mentioned in section 147(6) below.
Annotations:Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.Amendments (Textual)F49Words in s. 17(c) inserted (5.12.2005) by The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1(1), 6(a)F50Words in s. 17(d) inserted (5.12.2005) by The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1(1), 6(b)Marginal CitationsM51925 c.23. Previous: IntroductionNext: PartBack to topOptions/HelpPrint OptionsPrint The Whole ActPDF The Whole ActWeb page The Whole ActPrint This Part onlyPDF This Part onlyWeb page This Part onlyYou have chosen to open The Whole ActThe Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.Would you like to continue?Continue to openYou have chosen to open The Whole Act as a PDFThe Whole Act you have selected contains over 200 provisions and might take some time to download.Would you like to continue?Continue to openYou have chosen to open The Whole Act without SchedulesThe Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.Would you like to continue?Continue to openYou have chosen to open The Whole Act without Schedules as a PDFThe Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download.Would you like to continue?Continue to openYou have chosen to open the Whole ActThe Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.Would you like to continue?Continue to openYou have chosen to open the Whole Act without Schedules