2011 No. 170
Inheritance Tax

The Inheritance Tax Avoidance Schemes (Prescribed Descriptions of Arrangements) Regulations 2011

Made
Laid before House of Commons
Coming into force
The Treasury make the following Regulations in accordance with the powers conferred by section 306(1)(a) and (b) of the Finance Act 20041.

Citation and commencement

1.

These Regulations may be cited as the Inheritance Tax Avoidance Schemes (Prescribed Descriptions of Arrangements) Regulations 2011 and come into force on 6th April 2011.

Prescribed description of arrangements in relation to inheritance tax

2.

(1)

For the purposes of Part 7 of the Finance Act 2004 (disclosure of tax avoidance schemes) the arrangements specified in paragraph (2) are prescribed in relation to inheritance tax.

(2)

Arrangements are prescribed if —

(a)

as a result of any element of the arrangements property becomes relevant property; and

(b)

a main benefit of the arrangements is that an advantage is obtained in relation to a relevant property entry charge.

(3)

In this regulation—

“property” shall be construed in accordance with section 272 of the Inheritance Tax Act 19842;
“relevant property” has the meaning given by section 58(1) of the Inheritance Tax Act 1984 3;

“relevant property entry charge” means the charge to inheritance tax which arises on a transfer of value made by an individual during that individual’s life as a result of which property becomes relevant property;

“transfer of value” has the meaning given by section 3(1) of the Inheritance Tax Act 1984.

3.

Arrangements are excepted from disclosure under these Regulations if they are of the same, or substantially the same, description as arrangements—

(a)

which were first made available for implementation before 6th April 2011; or

(b)

in relation to which the date of any transaction forming part of the arrangements falls before 6th April 2011; or

(c)

in relation to which a promoter first made a firm approach4 to another person before 6th April 2011.
Michael Fabricant
James Duddridge
Two of the Lord Commissioners of Her Majesty’s Treasury
EXPLANATORY NOTE
(This note is not part of the Regulations)

These Regulations prescribe arrangements which enable, or might be expected to enable, a person to obtain an advantage in relation to Inheritance Tax and which a promoter is required to notify to Her Majesty’s Revenue and Customs under Part 7 of the Finance Act 2004 (c.12).

Regulation 1 provides for citation and commencement.

Regulation 2 prescribes arrangements in relation to inheritance tax which must be notified.

Regulation 3 provides that the duty to notify does not arise in relation to arrangements first made available for implementation, or entered into before 6th April 2011, or in respect of which a promoter first made a firm approach to another person before that date.

An Impact Assessment is available from the HMRC website at http://www.hmrc.gov.uk/ria/index.htm#full. It has been updated by a Tax Information and Impact Note which is annexed to the Explanatory Memorandum which is available alongside this instrument on www.legislation.gov.uk.