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.