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Finance Bill
Part 6 — Other taxes

246

 

(a)   

if collected or received in Great Britain, be placed to the general

account of the Commissioners of Customs and Excise kept at

the Bank of England under section 17 of the Customs and Excise

Management Act 1979;

(b)   

if collected or received in Northern Ireland, be paid into the

5

Consolidated Fund of the United Kingdom in such manner as

the Treasury may direct.”.

Inheritance tax

287     

Delivery of accounts etc

(1)   

Section 256 of the Inheritance Tax Act 1984 (c. 51) (regulations about

10

information to be furnished to the Board) is amended as follows.

(2)   

In subsection (1)—

(a)   

in paragraph (a), after “specified in” insert “or determined under”;

(b)   

after paragraph (a) insert—

“(aa)   

requiring persons who by virtue of regulations under

15

paragraph (a) above are not required to deliver accounts

under section 216 above to produce to the Board, in such

manner as may be specified in or determined under the

regulations, such information or documents as may be

so specified or determined”;

20

(c)   

in paragraph (b), after “so specified” insert “or determined”;

(d)   

paragraph (c) shall cease to have effect.

(3)   

After subsection (1) insert—

“(1A)   

Regulations under subsection (1)(aa) may in particular—

(a)   

provide that information or documents must be produced to the

25

Board by producing it or them to—

(i)   

a probate registry in England and Wales;

(ii)   

the sheriff in Scotland;

(iii)   

the Probate and Matrimonial Office in Northern Ireland;

(b)   

provide that information or documents produced as specified

30

in paragraph (a) is or are to be treated for any or all purposes of

this Act as produced to the Board;

(c)   

provide for the further transmission to the Board of information

or documents produced as specified in paragraph (a).”

(4)   

Subsection (2) shall cease to have effect.

35

(5)   

In subsection (3), at the end insert “and may make different provision for

different cases”.

(6)   

After subsection (3) insert—

“(3A)   

Regulations under this section may only be made—

(a)   

in relation to England and Wales or Northern Ireland, after

40

consulting the Lord Chancellor;

(b)   

in relation to Scotland, after consulting the Scottish Ministers.”

 

 

Finance Bill
Part 6 — Other taxes

247

 

288     

Grant of probate

(1)   

In section 109 of the Supreme Court Act 1981 (c. 54) (refusal of grant of probate

where inheritance tax unpaid)—

(a)   

for subsection (1) substitute—

“(1)   

No grant shall be made, and no grant made outside the United

5

Kingdom shall be resealed, except—

(a)   

on the production of information or documents under

regulations under section 256(1)(aa) of the Inheritance

Tax Act 1984 (excepted estates); or

(b)   

on the production of an account prepared in pursuance

10

of that Act showing by means of such receipt or

certification as may be prescribed by the Commissioners

either—

(i)   

that the inheritance tax payable on the delivery

of the account has been paid; or

15

(ii)   

that no such tax is so payable.”;

(b)   

in subsection (2), for “this section” substitute “subsection (1)(b)”;

(c)   

after subsection (2) insert—

“(2A)   

In this section and the following section, “the Commissioners”

means the Commissioners of Inland Revenue”;

20

(d)   

subsection (3) shall cease to have effect.

(2)   

In section 42 of the Probate and Legacy Duties Act 1808 (c. 149) (grant of

confirmation)—

(a)   

the existing text shall become subsection (1) of that section;

(b)   

at the beginning of that subsection, for “And” substitute “Subject to

25

subsection (2) below,”; and

(c)   

after that subsection insert—

“(2)   

In a case to which regulations under section 256(1)(aa) of the

Inheritance Tax Act 1984 (c. 51) apply (excepted estates), it shall not be

lawful to grant confirmation such as is mentioned in subsection (1)

30

above except on the production of information or documents in

accordance with those regulations.”

(3)   

In Article 20 of the Administration of Estates (Northern Ireland) Order 1979

(S.I.1979/1575 (N.I.14)) (inheritance tax accounts)—

(a)   

for paragraph (1) substitute—

35

“(1)   

The High Court shall not make any grant, or reseal any grant

made outside the United Kingdom, except—

(a)   

on the production of information or documents under

regulations under section 256(1)(aa) of the Inheritance

Tax Act 1984 (excepted estates); or

40

(b)   

on the production of an account prepared in pursuance

of that Act showing by means of such receipt or

certification as may be prescribed by the Commissioners

of Inland Revenue either—

(i)   

that the inheritance tax payable on the delivery

45

of the account has been paid; or

(ii)   

that no such tax is so payable.”;

 

 

Finance Bill
Part 6 — Other taxes

248

 

(b)   

in paragraph (2) of that Article, for “this Article” substitute “paragraph

(1)(b)”.

(4)   

Subsection (1) shall come into force on such day as the Treasury may after

consulting the Lord Chancellor by order made by statutory instrument

appoint.

5

(5)   

Subsection (2) shall come into force on such day as the Treasury may after

consulting the Scottish Ministers by order made by statutory instrument

appoint.

(6)   

Subsection (3) shall come into force on such day as the Treasury may after

consulting the Lord Chancellor by order made by statutory instrument

10

appoint.

289     

Amendments to penalty regime

(1)   

The Inheritance Tax Act 1984 is amended as specified in subsections (2) to (4).

(2)   

In section 245 (failure to deliver accounts)—

(a)   

in subsections (2)(a) and (3), for “not exceeding” substitute “of”;

15

(b)   

after subsection (4) insert—

“(4A)   

Without prejudice to any penalties under subsections (2) and (3)

above, if—

(a)   

the failure by the taxpayer to deliver the account

continues after the anniversary of the end of the period

20

given by section 216(6) or (7) (whichever is applicable),

and

(b)   

there would have been a liability to tax shown in the

account,

   

the taxpayer shall be liable to a penalty of an amount not

25

exceeding £3,000.”

(3)   

In section 245A (failure to provide information etc)—

(a)   

after subsection (1A) insert—

“(1B)    

Without prejudice to any penalties under subsection (1A)

above, if a person continues to fail to comply with the

30

requirements of section 218A after the anniversary of the end of

the period of six months referred to in section 218A(1), he shall

be liable to a penalty of an amount not exceeding £3,000.”;

(b)   

in subsection (5)—

(i)   

after “failing to make a return” insert “, to comply with the

35

requirements of section 218A”;

(ii)   

after “fails to make the return” insert “, to comply with the

requirements of section 218A”.

(4)   

In section 247 (provision of incorrect information)—

(a)   

in subsection (1), for the words from “, in the case of fraud” to the end

40

substitute “to a penalty not exceeding the difference mentioned in

subsection (2) below”;

(b)   

in subsection (3), for the words from “, in the case of fraud” to the end

substitute “to a penalty not exceeding £3,000”.

 

 

Finance Bill
Part 6 — Other taxes

249

 

(5)   

Subsection (2)(a) above has effect in relation to a failure by any person to

deliver an account under section 216 or 217 of the Inheritance Tax Act 1984

(c. 51) where the period under section 216(6) or (7) or 217 of that Act

(whichever is applicable) within which the person is required to deliver the

account expires after six months from the day on which this Act is passed.

5

(6)   

Subsection (2)(b) above has effect—

(a)   

in relation to a failure by any person to deliver an account under section

216 of the Inheritance Tax Act 1984 where the period under section

216(6) or (7) of that Act (whichever is applicable) within which the

person is required to deliver the account expires after the day on which

10

this Act is passed; and

(b)   

in relation to such a failure to deliver such an account where that period

expires on or before the day on which this Act is passed, as if, in the

subsection (4A) inserted in section 245 of that Act by subsection (2)(b)

above, for the words “anniversary of the end of the period given by

15

section 216(6) or (7) (whichever is applicable)” there were substituted

“end of the period of twelve months beginning with the day on which

the Finance Act 2004 is passed”.

(7)   

Subsection (3)(a) above has effect—

(a)   

in relation to a failure to comply with the requirements of section 218A

20

of the Inheritance Tax Act 1984 (c. 51) where the period of six months

referred to in subsection (1) of that section expires after the day on

which this Act is passed; and

(b)   

in relation to such a failure to comply with those requirements where

that period expires on or before the day on which this Act is passed, as

25

if, in the subsection(1B) inserted in section 245A of that Act by

subsection (3)(a) above, for the words “anniversary of the end of the

period of six months referred to in section 218A(1)” there were

substituted “end of the period of twelve months beginning with the day

on which the Finance Act 2004 is passed”.

30

(8)   

Subsection (3)(b) above has effect in relation to a failure to comply with the

requirements of section 218A of the Inheritance Tax Act 1984 where the period

of six months referred to in subsection (1) of that section expires after the day

on which this Act is passed.

(9)   

Subsection (4) above has effect in relation to incorrect accounts, information or

35

documents delivered, furnished or produced after the day on which this Act is

passed.

Stamp duty land tax and stamp duty

290     

Miscellaneous amendments

Schedule 37 to this Act, which makes amendments to Part 4 (stamp duty land

40

tax) and Part 5 (stamp duty) of the Finance Act 2003, has effect.

 

 

 
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