Change 1 Article Choose an article Title and introductory text 1 Charge on transfers. 2 Chargeable transfers and exempt transfers. 3 Transfers of value. 3A Potentially exempt transfers. 4 Transfers on death. 5 Meaning of estate. 6 Excluded property. 6A “Long-term UK resident”: individuals 6B “Long-term UK resident”: young persons 6C “Long-term UK resident”: bodies corporate 7 Rates. 8 Indexation of rate bands. 8A Transfer of unused nil-rate band between spouses and civil partners 8B Claims under section 8A 8C Section 8A and subsequent charges 8D Extra nil-rate band on death if interest in home goes to descendants etc 8E Residence nil-rate amount: interest in home goes to descendants etc 8F Residence nil-rate amount: no interest in home goes to descendants etc 8FA Downsizing addition: entitlement: low-value death interest in home 8FB Downsizing addition: entitlement: no residential interest at death 8FC Downsizing addition: effect: section 8E case 8FD Downsizing addition: effect: section 8F case 8FE Calculation of lost relievable amount 8G Meaning of “brought-forward allowance” 8H Meaning of “qualifying residential interest” , “qualifying former residential interest” and “residential property interest” 8HA Qualifying former residential interest”: interests in possession 8J Meaning of “inherited” 8K Meaning of “closely inherited” 8L Claims for brought-forward allowance and downsizing addition 8M Residence nil-rate amount: cases involving conditional exemption 9 Transitional provisions on reduction of tax. 10 Dispositions not intended to confer gratuitous benefit. 11 Dispositions for maintenance of family. 12 Dispositions allowable for income tax or conferring benefits under pension scheme. 12A Pension drawdown fund not used up: no deemed disposition 13 Dispositions by close companies for benefit of employees. 13A Dispositions by close companies to employee-ownership trusts 14 Waiver of remuneration. 15 Waiver of dividends. 16 Grant of tenancies of agricultural property. 17 Changes in distribution of deceased’s estate, etc. 18 Transfers between spouses or civil partners. 19 Annual exemption. 20 Small gifts. 21 Normal expenditure out of income. 22 Gifts in consideration of marriage or civil partnership. 23 Gifts to charities or registered clubs. 24 Gifts to political parties. 24A Gifts to housing associations. 25 Gifts for national purposes, etc. 26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26A Potentially exempt transfer of property subsequently held for national purposes etc. 27 Maintenance funds for historic buildings, etc. 28 Employee trusts. 28A Employee-ownership trusts 29 Loans—modifications of exemptions. 29A Abatement of exemption where claim settled out of beneficiary’s own resources. 30 Conditionally exempt transfers. 31 Designation and undertakings. 32 Chargeable events. 32A Associated properties. 33 Amount of charge under section 32. 34 Reinstatement of transferor’s cumulative total. 35 Conditional exemption on death before 7th April 1976. 35A Variation of undertakings. 36 Preliminary. 37 Abatement of gifts. 38 Attribution of value to specific gifts. 39 Attribution of value to residuary gifts. 39A Operation of sections 38 and 39 in cases of business or agricultural relief. 40 Gifts made separately out of different funds. 41 Burden of tax. 42 Supplementary. 43 Settlement and related expressions. 44 Settlor. 45 Trustee. 46 Interest in possession: Scotland. 46A Contract of life insurance entered into before 22nd March 2006 which on that day is settled property in which interest in possession subsists 46B Contract of life insurance entered into before 22nd March 2006 which immediately before that day is property to which section 71 applies 47 Reversionary interest. 47A Settlement power 48 Excluded property : reversionary interests and Treasury securities. 48ZA Excluded property: property situated outside the UK etc 48A Commencement of settlement 49 Treatment of interests in possession. 49A Immediate post-death interest 49B Transitional serial interests 49C Transitional serial interest: interest to which person becomes entitled during period 22nd March 2006 to 5th October 2008 49D Transitional serial interest: interest to which person becomes entitled on death of spouse or civil partner on or after 6th October 2008 49E Transitional serial interest: contracts of life insurance 50 Interests in part, etc. 51 Disposal of interest in possession. 52 Charge on termination of interest in possession. 53 Exceptions from charge under section 52. 54 Exceptions from charge on death 54A Special rate of charge where settled property affected by potentially exempt transfer. 54B Provisions supplementary to section 54A. 55A Purchased settlement powers 55 Reversionary interest acquired by beneficiary. 56 Exclusion of certain exemptions. 57 Application of certain exemptions. 57A Relief where property enters maintenance fund. 58 Relevant property. 59 Qualifying interest in possession. 60 Commencement of settlement. 61 Ten-year anniversary. 62 Related settlements. 62A Same-day additions 62B Same day additions: exceptions 62C Protected settlements 63 Minor interpretative provisions. 64 Charge at ten-year anniversary. 65 Charge at other times. 66 Rate of ten-yearly charge. 67 Added property, etc. 68 Rate before first ten-year anniversary. 69 Rate between ten-year anniversaries. 70 Property leaving temporary charitable trusts. 71 Accumulation and maintenance trusts. 71A Trusts for bereaved minors 71B Charge to tax on property to which section 71A applies 71C Sections 71A and 71B: meaning of “bereaved minor” 71D Age 18-to-25 trusts 71E Charge to tax on property to which section 71D applies 71F Calculation of tax charged under section 71E in certain cases 71G Calculation of tax charged under section 71E in all other cases 71H Sections 71A to 71G: meaning of “parent” 72 Property leaving employee trusts and newspaper trusts. 73 Pre-1978 protective trusts. 74 Pre-1981 trusts for disabled persons. 74A Arrangements involving acquisition of interest in settled property etc 74B Section 74A: supplementary provision 74C Interpretation of sections 74A and 74B 75 Property becoming subject to employee trusts. 75A Property becoming subject to employee-ownership trust 75B Cap on charges for pre-30 October 2024 excluded property 76 Property becoming held for charitable purposes, etc. 77 Maintenance funds for historic buildings, etc. 78 Conditionally exempt occasions. 79 Exemption from ten-yearly charge. 79A Variation of undertakings. 80 Initial interest of settlor or spouse or civil partner. 81 Property moving between settlements. 81A Reversionary interests in relevant property 81B Excluded property: property to which section 80 applies 82 Excluded property : property to which section 81 applies (old cases) 82A Excluded property: property to which section 81 applies (new cases) 83 Property becoming settled on a death. 84 Income applied for charitable purposes. 85 Credit for annual charges under Finance Act 1975. 86 Trusts for benefit of employees. 87 Newspaper trusts. 88 Protective trusts. 89 Trusts for disabled persons. 89A Self-settlement by person expected to fall within the definition of “disabled person” 89B Meaning of “disabled person's interest” 89C Disabled person's interest: powers of advancement etc 90 Trustees’ annuities, etc. 91 Administration period. 92 Survivorship clauses. 93 Disclaimers. 94 Charge on participators. 95 Participator in two companies. 96 Preference shares disregarded. 97 Transfers within group, etc. 98 Effect of alterations of capital, etc 99 Transfers where participators are trustees. 100 Alterations of capital, etc. where participators are trustees. 101 Companies interests in settled property. 102 Interpretation. 103 104 The relief. 105 Relevant business property. 106 Minimum period of ownership. 107 Replacements. 108 Successions. 109 Successive transfers. 109A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110 Value of business. 111 Value of certain shares and securities. 112 Exclusion of value of excepted assets. 113 Contracts for sale. 113A Transfers within seven years before death of transferor. 113B Application of section 113A to replacement property. 114 Avoidance of double relief. 115 Preliminary. 116 The relief. 117 Minimum period of occupation or ownership. 118 Replacements. 119 Occupation by company or partnership. 120 Successions. 121 Successive transfers. 122 Agricultural property of companies. 123 Provisions supplementary to section 122. 124 Contracts for sale. 124A Transfers within seven years before death of transferor. 124B Application of section 124A to replacement property. 124C Environmental management agreements 124D 100% relief allowance 124E Transfer of unused 100% relief allowance 124F Claims under section 124E 124G 100% trust relief allowance (relevant property) 124H Trust maximum allowance 124I Trust maximum allowance (qualifying pre-commencement settlements) 124J 100% trust relief allowance (special trusts) 124K 100% trust relief allowance (age 18-to-25 trusts) 125 The relief. 126 Charge to tax on disposal of trees or underwood. 127 Amount subject to charge. 128 Rate of charge. 129 Credit for tax charged. 130 Interpretation. 131 The relief. 132 Wasting assets. 133 Shares—capital receipts. 134 Payments of calls. 135 Reorganisation of share capital, etc. 136 Transactions of close companies. 137 Interests in land. 138 Leases. 139 Other property. 140 Interpretation. 141 Two or more transfers within five years. 141A Apportionment of relief under section 141 142 Alteration of dispositions taking effect on death. 143 Compliance with testator’s request. 144 Distribution etc. from property settled by will. 145 Redemption of surviving spouse’s or civil partner's life interest. 146 Inheritance (Provision for Family and Dependants) Act 1975. 147 Scotland; legitim. etc. 148 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150 Voidable transfers. 150A Certain pension interests treated as part of estate 151 Treatment of pension rights, etc. Other provision about pension interests 151A Person dying with alternatively secured pension fund 151B Relevant dependant with pension fund inherited from member over 75 151BA Rate or rates of charge under section 151B 151C Dependant dying with other pension fund 151D Unauthorised payment where person dies over 75 with pension or annuity 151E Rate or rates of charge under section 151D 152 Cash options. 153 Overseas pensions. 153ZA Qualifying payments 153A Death of emergency service personnel etc 154 Death on active service, etc. 155 Visiting forces, etc. 155ZA Foreign diplomats etc 155A Death of constables and service personnel targeted because of their status 156 Apsley House and Chevening Estate. 157 Non-residents’ bank accounts. 158 Double taxation conventions. 159 Unilateral relief. 159A Treatment of dormant assets 160 Market value. 161 Related property. 162 Liabilities. 162A Liabilities attributable to financing excluded property 162AA Liabilities attributable to financing non-residents' foreign currency accounts 162B Liabilities attributable to financing certain relievable property 162C Sections 162A, 162AA and 162B: supplementary provision 163 Restriction on freedom to dispose. 164 Transferor’s expenses. 165 Tax on capital gains. 166 Creditors’ rights. 167 Life policies, etc. 168 Unquoted shares and securities. 169 Farm cottages. 170 Leases for life, etc. 171 Changes occurring on death. 172 Funeral expenses. 173 Expenses incurred abroad. 174 Income tax and unpaid inheritance tax. 175 Liability to make future payments, etc. 175A Discharge of liabilities after death 176 Related property etc.—sales. 177 Scottish agricultural leases. 178 Preliminary. 179 The relief. 180 Effect of purchases. 181 Capital receipts. 182 Payment of calls. 183 Changes in holdings. 184 Exchanges. 185 Acquisition of like investments. 186 Value of part of a fund. 186A Cancelled investments. 186B Suspended investments. 187 Attribution of values to specific investments. 188 Limitation of loss on sale. 189 Date of sale or purchase. 190 Preliminary. 191 The relief. 192 Effect of purchases. 193 Changes between death and sale. 194 Leases. 195 Valuation by reference to other interests. 196 Sales to beneficiaries etc. and exchanges. 197 Compulsory acquisition more than three years after death. 197A Sales in fourth year after death. 198 Date of sale or purchase. 199 Dispositions by transferor. 200 Transfer on death. 201 Settled property. 202 Close companies. 203 Liability of spouse or civil partner. 204 Limitation of liability. 205 More than one person liable. 206 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207 Conditional exemption, etc. 208 Woodlands. 209 Succession in Scotland. 210 Pension rights 211 Burden of tax on death. 212 Powers to raise tax. 213 Refund by instalments. 214 Certificates of tax paid. 215 General. 216 Delivery of accounts. 217 Defective accounts. 218 Non-resident trustees. 218A Instruments varying dispositions taking effect on death 218B Pensions: information powers 219 Power to require information. 219A Power to call for documents etc. 219B Appeal against requirement to produce documents etc. 220 Inspection of property. 220A Exchange of information with other countries. 221 Notices of determination. 222 Appeals against determinations. 223 Late notice of appeal. 223A Appeal: HMRC review or determination by tribunal 223B Appellant requires review by HMRC 223C HMRC offer review 223D Notifying appeal to the tribunal 223E Nature of review etc 223F Effect of conclusions of review 223G Notifying appeal to tribunal after review concluded 223H Notifying appeal to tribunal after review offered but not accepted 223I Interpretation of sections 223A to 223I 224 Determination of appeal by tribunal. 225 Appeals from Special Commissioners. 225A Extension of regulation-making powers. 226 Payment: general rules. 226A Tax on notional pension property: withholding of benefits 226B Tax on notional pension property: direct payment by scheme administrator 227 Payment by instalments—land, shares and businesses. 228 Shares, etc. within section 227. 229 Payment by instalments—woodlands. 230 Acceptance of property in satisfaction of tax. 231 Powers to transfer property in satisfaction of tax. 232 Administration actions. 233 Interest on unpaid tax. 234 Interest on instalments. 235 Interest on overpaid tax. 236 Special cases. 237 Imposition of charge. 238 Effect of purchases. 239 Certificates of discharge. 240 Underpayments. 240A Underpayments: supplementary 240B Underpayments involving offshore matters etc 241 Overpayments. 242 Recovery of tax. 243 Scotland: recovery of tax in sheriff court. 244 Rights to address court. 245 Failure to deliver accounts. 245A Failure to provide information etc. 246 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 247 Provision of incorrect information. 248 Failure to remedy errors. 249 Recovery of penalties. 250 Time limit for recovery. 251 Appeals against summary determination of penalties. 252 Effect of award by the tribunal. 253 Mitigation of penalties. 254 Evidence. 255 Determination of questions on previous view of law. 256 Regulations about accounts, etc. 257 Form etc. of accounts. 258 Service of documents. 259 Inspection of records. 260 Inland Revenue Regulation Act 1890. 261 Scotland inventories. 262 Tax chargeable in certain cases of future payments, etc. 263 Annuity purchased in conjunction with life policy. 264 Transfers reported late. 265 Chargeable transfers affecting more than one property. 266 More than one chargeable transfer on one day. 267 Persons treated as domiciled in United Kingdom. 267ZA Election to be treated as domiciled in United Kingdom 267ZB Section 267ZA: further provision about election 267ZC Election to be treated as a long-term UK resident 267ZD Further provision about elections under section 267ZC 267ZE Subject of domicile election treated as a long-term UK resident 267ZF Double taxation conventions operating by reference to deemed domicile 267A Limited liability partnerships. 268 Associated operations. 269 Control of company. 270 Connected persons. 271 Property of corporations sole. 271A Qualifying non-UK pension scheme 272 General interpretation. 273 Transition from estate duty. 274 Commencement. 275 Continuity, and construction of references to old and new law. 276 Consequential amendments. 277 Repeals. 278 Short title. SCHEDULE A1 Non-excluded overseas property SCHEDULE 1 SCHEDULE 1A Gifts to charities etc: tax charged at lower rate SCHEDULE 2 PROVISIONS APPLYING ON REDUCTION OF TAX SCHEDULE 3 GIFTS FOR NATIONAL PURPOSES, ETC. SCHEDULE 4 MAINTENANCE FUNDS FOR HISTORIC BUILDINGS, ETC. SCHEDULE 5 CONDITIONAL EXEMPTION: DEATHS BEFORE 7TH APRIL 1976 SCHEDULE 5A Qualifying payments: victims of persecution during Second World War era SCHEDULE 6 TRANSITION FROM ESTATE DUTY SCHEDULE 7 COMMENCEMENT: SUPPLEMENTARY RULES SCHEDULE 8 CONSEQUENTIAL AMENDMENTS SCHEDULE 9 REPEALS schedule-n10
What to do with it
As published
8G Meaning of “brought-forward allowance”
(1) This section is about the amount of the brought-forward allowance (see section 8D(5)(f)) for a person (“P”) who dies on or after 6 April 2017.
(2) In this section “related person” means a person other than P where—
(a) the other person dies before P, and
(b) immediately before the other person dies, P is the other person's spouse or civil partner.
(3) P's brought-forward allowance is calculated as follows—
(a) identify each amount available for carry-forward from the death of a related person (see sections 8E , 8F and 8FD, and subsections (4) and (5)),
(b) express each such amount as a percentage of the residential enhancement at the death of the related person concerned,
(c) calculate the percentage that is the total of those percentages, and
(d) the amount that is that total percentage of the residential enhancement at P's death is P's brought-forward allowance or, if that total percentage is greater than 100%, P's brought-forward allowance is the amount of the residential enhancement at P's death,
but P's brought-forward allowance is nil if no claim for it is made under section 8L.
(4) Where the death of a related person occurs before 6 April 2017—
(a) an amount equal to £100,000 is treated for the purposes of subsection (3) as being the amount available for carry-forward from the related person's death, but this is subject to subsection (5), and
(b) the residential enhancement at the related person's death is treated for those purposes as being £100,000.
(5) If the value (“RPE”) of the related person's estate immediately before the related person's death is greater than £2,000,000, the amount treated under subsection (4)(a) as available for carry-forward is reduced (but not below nil) by—
R P E − £2,000,000 2
Your wording
Your change, as a redline
8G Meaning of “brought-forward allowance”
(1) This section is about the amount of the brought-forward allowance (see section 8D(5)(f)) for a person (“P”) who dies on or after 6 April 2017.
(2) In this section “related person” means a person other than P where—
(a) the other person dies before P, and
(b) immediately before the other person dies, P is the other person's spouse or civil partner.
(3) P's brought-forward allowance is calculated as follows—
(a) identify each amount available for carry-forward from the death of a related person (see sections 8E , 8F and 8FD, and subsections (4) and (5)),
(b) express each such amount as a percentage of the residential enhancement at the death of the related person concerned,
(c) calculate the percentage that is the total of those percentages, and
(d) the amount that is that total percentage of the residential enhancement at P's death is P's brought-forward allowance or, if that total percentage is greater than 100%, P's brought-forward allowance is the amount of the residential enhancement at P's death,
but P's brought-forward allowance is nil if no claim for it is made under section 8L.
(4) Where the death of a related person occurs before 6 April 2017—
(a) an amount equal to £100,000 is treated for the purposes of subsection (3) as being the amount available for carry-forward from the related person's death, but this is subject to subsection (5), and
(b) the residential enhancement at the related person's death is treated for those purposes as being £100,000.
(5) If the value (“RPE”) of the related person's estate immediately before the related person's death is greater than £2,000,000, the amount treated under subsection (4)(a) as available for carry-forward is reduced (but not below nil) by—
R P E − £2,000,000 2
A proposal here is not law. Support on Solon is evidence that people want the change; the official route says what it takes to make it law.