Finance Act 2009

Inheritance tax payable by instalments

7 (1) The late payment interest start date for each instalment of an amount to which this paragraph applies is the date on which that instalment is to be paid.

(2) This paragraph applies to any amount of inheritance tax which is payable by instalments under section 229 of IHTA 1984.

(3) This paragraph also applies to any amount of inheritance tax which is payable by instalments under section 227 of IHTA 1984 if the value on which the amount is payable is attributable to—

(a) the value of qualifying property within subsection (2)(b) or (c) of that section (shares or securities, or business or interest in a business), or

(b) value treated as reduced under Chapter 2 of Part 5 of that Act.

(4) But this paragraph does not apply to an amount by virtue of sub-paragraph (3)(a) if the qualifying property is shares or securities of a company which—

(a) falls within sub-paragraph (5), but

(b) does not fall within sub-paragraph (6) or (7).

(5) A company falls within this sub-paragraph if its business consists wholly or mainly of one or more of the following—

(a) dealing in securities, stocks or shares, land or buildings, or

(b) making or holding investments.

(6) A company falls within this sub-paragraph if its business consists wholly or mainly in being a holding company (as defined in section 1159 of the Companies Act 2006) of one or more companies not falling within sub-paragraph (5).

(7) A company falls within this sub-paragraph if its business is carried on in the United Kingdom and is—

(a) wholly that of a market maker, or

(b) that of a discount house.

(8) A company is a market maker if—

(a) it holds itself out at all normal times in compliance with the rules of The Stock Exchange as willing to buy and sell securities, stocks or shares at a price specified by it, and

(b) it is recognised as doing so by the Council of The Stock Exchange.