(1)The following section shall be inserted in the M1Inheritance Tax Act 1984 after section 24—
(1)A transfer of value is exempt to the extent that the value transferred byit is attributable to land in the United Kingdom given to a registered housingassociation.
(2)In subsection (1) above “registered housing association”means a registered housing association within the meaning of the Housing Associations Act 1985 or Part VII of the Housing (Northern Ireland) Order 1981.
(3)Subsections (2) to (5) of section 23 and subsection (4) of section 24above shall apply in relation to subsection (1) above as they apply inrelation to section 24(1).”
(2)In section 23(5) of the Inheritance Tax Act 1984 the words “or, where it is land, of a body mentioned in section 24Abelow” shall be added at the end.
(3)In section 29(5) of that Act—
(a)the words “or, where it is land, of a body mentioned in section24A” shall be inserted at the end of paragraph (b), and
(b)after “24(3) and (4),” there shall be inserted “24A(3),”.
(4)In section 161(2)(b)(ii) of that Act after “24,” there shall beinserted “24A,”.
(5)In section 102(5) of the M2Finance Act 1986 afterparagraph (e) there shall be inserted—
“(ee)section 24A (gifts to housing associations);”.
(6)This section shall apply to transfers of value made on or after 14th March1989.
(1)The following section shall be inserted after section 29 of the M3Inheritance Tax Act 1984—
(1)This section applies where—
(a)apart from this section the transfer of value made on the death of anyperson is an exempt transfer to the extent that the value transferred by itis attributable to an exempt gift, and
(b)the exempt beneficiary, in settlement of the whole or part of any claimagainst the deceased’s estate, effects a disposition of property not derivedfrom the transfer.
(2)The provisions of this Act shall have effect in relation to the transferas if—
(a)so much of the relevant value as is equal to the following amount, namelythe amount by which the value of the exempt beneficiary’s estate immediatelyafter the disposition is less than it would be but for the disposition, or
(b)where that amount exceeds the relevant value, the whole of the relevantvalue,
were attributable to such a gift to the exempt beneficiary as ismentioned in subsection (3) below (instead of being attributable to a giftwith respect to which the transfer is exempt).
(3)The gift referred to in subsection (2) above is a specific gift withrespect to which the transfer is chargeable, being a gift which satisfies theconditions set out in paragraphs (a) and (b) of section 38(1) below.
(4)In determining the value of the exempt beneficiary’s estate for thepurposes of subsection (2) above—
(a)no deduction shall be made in respect of the claim referred to insubsection (1)(b) above, and
(b)where the disposition referred to in that provision constitutes a transferof value—
(i)no account shall be taken of any liability of the beneficiary for any taxon the value transferred, and
(ii)sections 104 and 116 below shall be disregarded.
(5)Subsection (1)(b) above does not apply in relation to any claim againstthe deceased’s estate in respect of so much of any liability as is, inaccordance with this Act, to be taken into account in determining the valueof the estate.
(6)In this section—
“exempt gift”, in relation to a transfer of value fallingwithin subsection (1)(a) above, means—
(a)a gift with respect to which the transfer is (apart from this section)exempt by virtue of the provisions of any of sections 18 and 23 to 28 above,or
(b)where (apart from this section) the transfer is so exempt with respect toa gift up to a limit, so much of the gift as is within that limit;
“the exempt beneficiary”, in relation to an exempt gift,means any of the following, namely—
(a)where the gift is exempt by virtue of section 18 above, the deceased’sspouse,
(b)where the gift is exempt by virtue of section 23 above, any person orbody—
(i)whose property the property falling within subsection (1) of that sectionbecomes, or
(ii)by whom that property is held on trust for charitable purposes,
(c)where the gift is exempt by virtue of section 24, 25 or 26 above, any bodywhose property the property falling within subsection (1) of that sectionbecomes,
(d)where the gift is exempt by virtue of section 24A above, any body to whomthe land falling within subsection (1) of that section is given, and
(e)where the gift is exempt by virtue of section 27 or 28 above, the trusteesof any settlement in which the property falling within subsection (1) of thatsection becomes comprised;
“gift” and “specific gift” have the samemeaning as in Chapter III of this Part; and
“the relevant value”, in relation to a transfer of valuefalling within subsection (1)(a) above, means so much of the value transferredby the transfer as is attributable to the gift referred to in that provision.”
(2)This section shall have effect in relation to deaths occurring on or afterthe day on which this Act is passed.
Marginal Citations
M31984c. 51.