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Inheritance tax: transfer of nil-rate band etc |
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1 | IHTA 1984 is amended as follows. |
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2 | After section 8 insert— |
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“8A | Transfer of unused nil-rate band between spouses and civil partners |
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(1) | This section applies where— |
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(a) | immediately before the death of a person (a “deceased |
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person”), the deceased person had a spouse or civil partner |
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(b) | the deceased person had unused nil-rate band on death. |
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(2) | A person has unused nil-rate band on death if—![equation: greaterthan[char[M],times[char[V],char[T]]]](missing.gif) |
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M is the maximum amount that could be transferred by a |
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chargeable transfer made (under section 4 above) on the |
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person’s death if it were to be wholly chargeable to tax at the |
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rate of nil per cent. (assuming, if necessary, that the value of |
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the person’s estate were sufficient but otherwise having |
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regard to the circumstances of the person); and |
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VT is the value actually transferred by the chargeable transfer |
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so made (or nil if no chargeable transfer is so made). |
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(3) | Where a claim is made under this section, the nil-rate band |
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maximum at the time of the survivor’s death is to be treated for the |
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purposes of the charge to tax on the death of the survivor as |
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increased by the percentage specified in subsection (4) below (but |
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subject to subsection (5) and section 8C below). |
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(4) | That percentage is—![equation: cross[over[char[E],times[char[N],char[R],char[B],char[M],char[D]]],num[100.0000000000000000,
"100"]]](missing.gif) |
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E is the amount by which M is greater than VT in the case of the |
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NRBMD is the nil-rate band maximum at the time of the |
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(5) | If (apart from this subsection) the amount of the increase in the nil- |
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rate band maximum at the time of the survivor’s death effected by |
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this section would exceed the amount of that nil-rate band |
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maximum, the amount of the increase is limited to the amount of that |
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(6) | Subsection (5) above may apply either— |
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(a) | because the percentage mentioned in subsection (4) above (as |
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reduced under section 8C below where that section applies) |
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is more than 100 because of the amount by which M is greater |
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than VT in the case of one deceased person, or |
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(b) | because this section applies in relation to the survivor by |
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reference to the death of more than one person who had |
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unused nil-rate band on death. |
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(7) | In this Act “nil-rate band maximum” means the amount shown in the |
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second column in the first row of the Table in Schedule 1 to this Act |
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(upper limit of portion of value charged at rate of nil per cent.) and |
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in the first column in the second row of that Table (lower limit of |
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portion charged at next rate). |
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8B | Claims under section 8A |
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(1) | A claim under section 8A above may be made— |
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(a) | by the personal representatives of the survivor within the |
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(b) | (if no claim is so made) by any other person liable to the tax |
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chargeable on the survivor’s death within such later period |
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as an officer of Revenue and Customs may in the particular |
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(2) | If no claim under section 8A above has been made in relation to a |
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person (P) by reference to whose death that section applies in |
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relation to the survivor, the claim under that section in relation to the |
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survivor may include a claim under that section in relation to P if that |
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does not affect the tax chargeable on the value transferred by the |
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chargeable transfer of value made on P’s death. |
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(3) | In subsection (1)(a) above “the permitted period” means— |
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(a) | the period of two years from the end of the month in which |
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the survivor dies or (if it ends later) the period of three |
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months beginning with the date on which the personal |
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representatives first act as such, or |
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(b) | such longer period as an officer of Revenue and Customs |
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may in the particular case allow. |
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(4) | A claim made within either of the periods mentioned in subsection |
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(3)(a) above may be withdrawn no later than one month after the end |
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8C | Section 8A and subsequent charges |
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(1) | This section applies where— |
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(a) | the conditions in subsection (1)(a) and (b) of section 8A above |
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(b) | after the death of the deceased person, tax is charged on an |
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amount under any of sections 32, 32A and 126 below by |
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reference to the rate or rates that would have been applicable |
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to the amount if it were included in the value transferred by |
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the chargeable transfer made (under section 4 above) on the |
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(2) | If the tax is charged before the death of the survivor, the percentage |
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referred to in subsection (3) of section 8A above is (instead of that |
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specified in subsection (4) of that section)—![equation: cross[id[plus[over[char[E],times[char[N],char[R],char[B],char[M],char[D]]],minus[
over[times[char[T],char[A]],times[char[N],char[R],char[B],char[M],char[E]]]]]],num[
100.0000000000000000,"100"]]](missing.gif) |
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E and NRBMD have the same meaning as in subsection (4) of |
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TA is the amount on which tax is charged; and |
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NRBME is the nil-rate band maximum at the time of the event |
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(3) | If this section has applied by reason of a previous event or events, the |
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reference in subsection (2) to![equation: over[times[char[T],char[A]],times[char[N],char[R],char[B],char[M],char[E]]]](missing.gif) |
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| is to the aggregate of that fraction in respect of the current event and |
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the previous event (or each of the previous events). |
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(4) | If the tax is charged after the death of the survivor, it is charged as if |
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the personal nil-rate band maximum of the deceased person were |
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(5) | In subsection (4) above— |
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“the personal nil-rate band maximum of the deceased person” |
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is the nil rate band maximum which is treated by Schedule 2 |
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to this Act as applying in relation to the deceased person’s |
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death, increased in accordance with section 8A above where |
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that section effected an increase in that nil-rate band |
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maximum in the case of the deceased person (as survivor of |
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another deceased person), and |
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“appropriately reduced” means reduced by the amount (if any) |
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by which the amount on which tax was charged at the rate of |
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nil per cent. on the death of the survivor was increased by |
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reason of the operation of section 8A above by virtue of the |
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position of the deceased person.” |
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3 | In section 147 (Scotland: legitim etc), insert at the end— |
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“(10) | Where the application of subsection (4) in relation to the estate of a |
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person means that too great an increase has been made under |
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subsection (3) of section 8A above in the case of another person, the |
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claim under that section in that case may be amended accordingly by |
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the Commissioners for Her Majesty’s Revenue and Customs.” |
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4 (1) | Section 151BA (rates of charge under section 151B) is amended as follows. |
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(2) | In subsection (5), for “had been in force at the time of the member’s death” |
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substitute “(“the applicable Table”) had been in force at the time of the |
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member’s death, but subject to subsections (6) and (9) below.” |
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(3) | After that subsection insert— |
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“(6) | The nil-rate band maximum in the applicable Table is to be treated |
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for the purposes of this section as reduced by the used-up percentage |
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of the difference between— |
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(a) | that nil-rate band maximum, and |
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(b) | the nil-rate band maximum which was actually in force at the |
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time of the member’s death. |
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(7) | For the purposes of subsection (6) above “the used-up percentage” |
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is—![equation: plus[num[100.0000000000000000,"100"],minus[id[cross[over[char[E],times[char[N],char[
R],char[B],char[M]]],num[100.0000000000000000,"100"]]]]]](missing.gif) |
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E is the amount by which M is greater than VT under section |
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8A(2) above in the case of the member; and |
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NRBM is the nil-rate band maximum at the time of the |
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(4) | After subsection (7) insert— |
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“(8) | The following provisions apply where— |
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(a) | tax is charged under section 151B above, and |
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(b) | immediately before the member’s death, the member had a |
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spouse or civil partner (“the survivor”). |
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(9) | If the survivor died before the event giving rise to the charge, tax is |
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charged as if the personal nil-rate band maximum of the member |
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were appropriately reduced. |
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(10) | In subsection (9) above— |
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“the personal nil-rate band maximum of the member” is the nil |
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rate band maximum in the applicable Table, increased in |
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accordance with section 8A above where that section effected |
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an increase in that nil-rate band maximum in the case of the |
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member (as a survivor of another deceased person), and |
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“appropriately reduced” means reduced by the amount (if any) |
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by which the amount on which tax was charged at the rate of |
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nil per cent. on the death of the survivor was increased by |
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reason of the operation of section 8A above by virtue of the |
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(11) | If the survivor did not die before the event giving rise to the charge, |
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tax is to be charged on the death of the survivor as if the percentage |
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referred to in section 8A(3) above in the case of the member were that |
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specified in subsection (12) below. |
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(12) | That percentage is—![equation: cross[over[times[char[A],char[E]],times[char[A],char[N],char[R],char[B],char[M]]],
num[100.0000000000000000,"100"]]](missing.gif) |
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AE is the adjusted excess, that is the amount by which M would |
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be greater than VT under section 8A(2) above in the case of |
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(a) | the taxable amount were included in the value |
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transferred by the chargeable transfer made on the |
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(b) | the nil-rate band maximum at the time of the |
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member’s death were ANRBM; and |
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ANRBM is the adjusted nil-rate band maximum, that is the nil- |
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rate band maximum in the applicable Table (as reduced |
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under subsection (6) above where that subsection applies).” |
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5 | In section 239(4) (certificates of discharge: cases where further tax not |
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affected), after paragraph (a) (but before the “or”) insert— |
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“(aa) | that may afterwards be shown to be payable by reason of too |
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great an increase having been made under section 8A(3) |
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6 | In section 247(2) (tax-geared penalty), after “liable” insert “, or for which any |
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other person is liable by virtue of the operation of section 8A above,”. |
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7 | In section 272 (general interpretation), insert at the appropriate place— |
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““nil-rate band maximum” has the meaning given by section |
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8 | In section 274 of TCGA 1992 (value determined for inheritance tax), for “that |
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tax” substitute “the application of that tax to the estate”. |
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9 (1) | The amendments made by paragraphs 2, 3 and 4(4) have effect in relation to |
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cases where the survivor’s death occurs on or after 9 October 2007. |
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(2) | The amendments made by paragraphs 4(2) and (3) have effect in relation to |
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deaths, cases where scheme administrators become aware of deaths and |
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cessations of dependency occurring on or after 6 April 2008. |
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(3) | The amendments made by paragraphs 5 and 7 are to be treated as having |
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come into force on 9 October 2007. |
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(4) | The amendment made by paragraph 8 has effect in relation to any |
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ascertainment of value made on or after 6 April 2008. |
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Modifications for cases where deceased person died before 25 July 1986 |
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10 (1) | Section 8A of IHTA 1984 (as inserted by paragraph 2) has effect in relation |
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to cases where the deceased person died before 25 July 1986 (and the |
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survivor dies on or after 9 October 2007) subject as follows. |
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(2) | Where the deceased person died on or after 1 January 1985— |
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(a) | the references in subsection (2) to a chargeable transfer made under |
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section 4 of IHTA 1984 is to a chargeable transfer made under section |
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(b) | the reference in subsection (4) to the nil-rate band maximum is to the |
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amount shown in the second column of the first row, and the first |
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column of the second row, of the First Table in Schedule 1 to that Act. |
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(3) | Where the deceased person died on or after 13 March 1975 and before 1 |
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(a) | the references in subsection (2) to a chargeable transfer made under |
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section 4 of IHTA 1984 is to a chargeable transfer made under section |
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(b) | the reference in subsection (4) to the nil-rate band maximum is to the |
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amount shown in the second column of the first row, and in the first |
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column of the second row, of the First Table in section 37 of that Act. |
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(4) | Where the deceased person died on or after 16 April 1969 and before 13 |
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March 1975, section 8A applies as if— |
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(a) | M were the amount specified in paragraph (a) in Part 1 of Schedule |
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17 to FA 1969 at the time of the deceased person’s death, |
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(b) | VT were the aggregate principal value of all property comprised in |
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the estate of the deceased person for the purposes of estate duty, and |
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(c) | the reference in subsection (4) to the nil-rate band maximum were to |
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the amount mentioned in paragraph (a). |
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(5) | Where the deceased person died before 16 April 1969, section 8A applies as |
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(a) | M were the amount specified as the higher figure in the first line, and |
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the lower figure in the second line, in the first column of the scale in |
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section 17 of FA 1894 at the time of the deceased person’s death, |
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(b) | VT were the principal value of the estate of the deceased person for |
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the purposes of estate duty, and |
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(c) | the reference in subsection (4) to the nil-rate band maximum were to |
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the figure mentioned in paragraph (a). |
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11 (1) | Section 8C of IHTA 1984 (as inserted by paragraph 2) has effect in relation to |
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cases where the deceased person died before 25 July 1986 but on or after 13 |
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March 1975 (and the survivor dies on or after 9 October 2007) subject as |
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(2) | Where the deceased person died on or after 1 January 1985— |
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(a) | the reference in subsection (1) to sections 32, 32A and 126 of IHTA |
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1984 includes sections 32, 32A and 126 of CTTA 1984, |
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(b) | the reference in that subsection to section 4 of IHTA 1984 is to section |
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(c) | the reference in subsection (2) to the nil-rate band maximum includes |
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the amount shown in the second column of the first row, and the first |
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column of the second row, of the First Table in Schedule 1 to that Act, |
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(d) | the first reference in subsection (5) to the nil-rate band maximum is |
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(e) | the reference in subsection (5) to Schedule 2 to IHTA 1984 includes |
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(3) | Where the deceased person died on or after 7 April 1976 and before 1 |
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(a) | the reference in subsection (1) to sections 32, 32A and 126 of IHTA |
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1984 includes sections 32, 32A and 126 of CTTA 1984, section 78 of |
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FA 1976 and paragraph 2 of Schedule 9 to FA 1975, |
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(b) | the reference in that subsection to section 4 of IHTA is to section 22 |
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(c) | the reference in subsection (2) to the nil-rate band maximum includes |
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the amount shown in the second column of the first row, and the first |
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column of the second row, of the First Table in Schedule 1 to CTTA |
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1984 and the amount shown in the second column of the first row, |
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and in the first column of the second row, of the First Table in section |
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(d) | the first reference in subsection (5) to the nil-rate band maximum is |
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(e) | the reference in subsection (5) to Schedule 2 to IHTA 1984 includes |
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Schedule 2 to CTTA 1984, Schedule 15 to FA 1980 and section 62 of |
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| but, if the event occasioning the charge occurred before 27 October 1977, the |
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reference in subsection (4) to the personal nil-rate band maximum is to the |
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amount shown in the second column of the first row, and in the first column |
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of the second row, of the First Table in section 37 of FA 1975 at the time of |
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the deceased person’s death. |
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(4) | Where the deceased person died on or after 13 March 1975 and before 7 April |
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(a) | the reference in subsection (1) to sections 32, 32A and 126 of IHTA |
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1984 includes paragraph 1 of Schedule 5 to that Act, section 126 of |
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CTTA 1984 and paragraph 2 of Schedule 9 to FA 1975, |
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(b) | the reference in that subsection to section 4 of IHTA is to section 22 |
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(c) | the reference in subsection (2) to the nil-rate band maximum includes |
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the amount shown in the second column of the first row, and the first |
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column of the second row, of the First Table in Schedule 1 to CTTA |
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1984 and the amount shown in the second column of the first row, |
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and in the first column of the second row, of the First Table in section |
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(d) | the reference in subsection (4) to the personal nil-rate band |
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maximum is to the amount shown in the second column of the first |
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row, and in the first column of the second row, of the First Table in |
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section 37 of FA 1975 at the time of the deceased person’s death. |
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Fuel duty: biodiesel and bioblend |
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1 | HODA 1979 is amended as follows. |
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2 (1) | Section 1 (hydrocarbon oil) is amended as follows. |
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(2) | In subsection (1), for “Subsections (2) to (7) below” substitute “The following |
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(3) | After subsection (7) insert— |
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“(8) | “Kerosene” means heavy oil of which more than 50% by volume |
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distils at a temperature of 240oC or less.” |
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3 (1) | Section 2A (power to amend definitions) is amended as follows. |
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(2) | In subsection (1), for paragraphs (a) to (e) substitute— |
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(3) | Omit subsections (1A) and (1B). |
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