Section 74: Inheritance Tax: Exemption for Decorations and Other Awards
Summary
1.This section amends the legislation relating to property which is to be excluded for the purposes of inheritance tax (IHT). It extends the existing IHT tax exemption which applies to decorations for valour or gallant conduct to encompass an Order, decoration or award, including those made by a country or territory outside the UK. The amendment applies to transfers of value made, or treated as made, on or after 3 December 2014.
Details of the Section
2.Subsection (1) amends IHTA by inserting new s6 (1B). It also provides that a relevant decoration and other award is excluded property if it has never been the subject of a disposition for money or money’s worth.
3.Subsection (2) provides that the amendment applies to transfers of value made, or treated as made, on or after 3 December 2014.
Background Note
4.At Autumn Statement 2014 the government announced that the existing exemption from IHT for awards for valour and gallantry will be extended to include awards for service in the armed forces, and awards made by the State in recognition of achievements and service in public life, such as OBEs. The exemption will also include Orders, decorations or awards made by other countries and territories. The amendments made by this section will have effect for all transfers of such property made (or treated as made) on or after 3 December 2014.
