Finance Act 2012

Effect of Article 32 certificate

22 (1) The cleared assets are to be treated as if they were excluded property in determining the value of P’s estate immediately before P’s death.

(2) As a result, any ancillary charge directly connected with those assets is also extinguished.

(3) But—

(a) treating the cleared assets as if they were excluded property does not affect any liability to inheritance tax on the rest of P’s estate, and

(b) that liability remains what it would have been, had the cleared assets not been treated as excluded property.

(4) Accordingly, if the cleared assets were ever to be included in an account or further account under section 216 or 217 of IHTA 1984 in respect of the chargeable transfer and it were found that the inheritance tax charged on the value of the property in P’s estate other than the cleared assets should have been higher, the extra tax charged on the value of that other property remains due, together with any associated ancillary charge.

(5) For the purposes of sub-paragraphs (3) and (4), the value of the cleared assets is assumed to form the highest part of the value transferred by the chargeable transfer.