SCHEDULES

SCHEDULE 44Trusts with vulnerable beneficiary

5Inheritance Tax Act 1984

1

Section 71E (charge to tax on property to which section 71D applies) is amended as follows.

2

In subsection (1), for “(4)” substitute “(4A)”.

3

After subsection (4) insert—

4A

If an amount is paid or applied otherwise than for the benefit of B and the exemptions provided by subsections (2) to (4) do not apply, tax is not charged under this section in respect of whichever is the lower of the following amounts—

a

the amount paid or applied, and

b

the annual limit.