(1) Where any person, in the course of a trade or profession carried on by him, other than the profession of a barrister, has been concerned with the making of a settlement and knows or has reason to believe—
(a) that the settlor was a long-term UK resident, and
(b) that the trustees of the settlement are not or will not be resident in the United Kingdom,
he shall, within three months of the making of the settlement, make a return to the Board stating the names and addresses of the settlor and of the trustees of the settlement.
(2) A person shall not be required to make a return under this section in relation to—
(a) any settlement made by will, or
(b) any other settlement, if such a return in relation to that settlement has already been made by another person or if an account has been delivered in relation to it under section 216 above.
(3) For the purposes of this section trustees of a settlement shall be regarded as not resident in the United Kingdom unless the general administration of the settlement is ordinarily carried on in the United Kingdom and the trustees or a majority of them (and, where there is more than one class of trustees, a majority of each class) are for the time being resident in the United Kingdom.
218A Instruments varying dispositions taking effect on death
(1) Where—
(a) an instrument is made varying any of the dispositions of the property comprised in the estate of a deceased person immediately before his death,
(b) the instrument contains a statement under subsection (2) of section 142 above, and
(c) the variation results in additional tax being payable,
the relevant persons (within the meaning of that subsection) shall, within six months after the day on which the instrument is made, deliver a copy of it to the Board and notify them of the amount of the additional tax.
(2) To the extent that any of the relevant persons comply with the requirements of this section, the others are discharged from the duty to comply with them.
(1) The powers conferred on the Board by section 251 of the Finance Act 2004 (powers relating to the provision and preservation of information in connection with pensions) are exercisable for the purposes of this Act.
(2) Subsection (1) is without prejudice to the generality of that section of that Act.
(1) Where it appears to the Board that a transfer of value has been made or where a claim under this Act is made to the Board in connection with a transfer of value, the Board may give notice in writing to any person who appears to the Board to be the transferor or the claimant or to be liable for any of the tax chargeable on the value transferred, stating that they have determined the matters specified in the notice.
(2) The matters that may be specified in a notice under this section in relation to any transfer of value are all or any of the following—
(a) the date of the transfer;
(b) the value transferred and the value of any property to which the value transferred is wholly or partly attributable;
(c) the transferor;
(d) the tax chargeable (if any) and the persons who are liable for the whole or part of it;
(e) the amount of any payment made in excess of the tax for which a person is liable and the date from which and the rate at which tax or any repayment of tax overpaid carries interest; and
(f) any other matter that appears to the Board to be relevant for the purposes of this Act.
(3) A determination for the purposes of a notice under this section of any fact relating to a transfer of value—
(a) shall, if that fact has been stated in an account or return under this Part of this Act and the Board are satisfied that the account or return is correct, be made by the Board in accordance with that account or return, but
(b) may, in any other case, be made by the Board to the best of their judgment.
(4) A notice under this section shall state the time within which and the manner in which an appeal against any determination in it may be made.
(5) Subject to any variation by agreement in writing or on appeal, a determination in a notice under this section shall be conclusive for the purposes of this Act against the person on whom the notice is served; and if the notice is served on the transferor and specifies a determination of the value transferred by the transfer of value or previous transfers of value, the determination, so far as relevant to the tax chargeable in respect of later transfers of value (whether or not made by the transferor) shall be conclusive also against any other person, subject however to any adjustment under section 240 or 241 below.
(6) References in this section to transfers of value or to the values transferred by them shall be construed as including references to—
(a) chargeable events by reference to which tax is chargeable under section 32 or 32A of this Act,
(b) occasions on which tax is chargeable under Chapter III of Part III of this Act,
(c) disposals on which tax is chargeable under section 126 of this Act,
or to the amounts on which tax is then chargeable.
(1) A person on whom a notice under section 221 above has been served may, within thirty days of the service, appeal against any determination specified in it by notice in writing given to the Board and specifying the grounds of appeal.
(2) Sections 223D, 223G and 223H provide for notification of the appeal to the tribunal.
(3) Where—
(a) it is so agreed between the appellant and the Board, or
(b) the High Court, on an application made by the appellant, is satisfied that the matters to be decided on the appeal are likely to be substantially confined to questions of law and gives leave for that purpose,
the appeal may be notified to the High Court.
(4) An appeal on any question as to the value of land in the United Kingdom may be notified to the appropriate . . . tribunal.
(4ZA) The appeal may be notified under subsection (3) or (4) only if it could be notified to the tribunal under section 223D, 223G or 223H.
(4A) If and so far as the question in dispute on any appeal under this section which has been notified to the tribunal or the High Court is a question as to the value of land in the United Kingdom, the question shall be determined on a reference to the appropriate . . . tribunal.
(4B) In this section the appropriate tribunal means—
(a) where the land is in England or Wales, the Upper Tribunal;
(b) where the land is in Scotland, the Lands Tribunal for Scotland;
(c) where the land is in Northern Ireland, the Lands Tribunal for Northern Ireland.
(5) In the application of this section to Scotland, for references to the High Court there shall be substituted references to the Court of Session.
(1) This section applies in a case where—
(a) notice of appeal may be given to HMRC under section 222, but
(b) no notice is given before the relevant time limit.
(2) Notice may be given after the relevant time limit if—
(a) HMRC agree, or
(b) where HMRC do not agree, the tribunal gives permission.
(3) If the following conditions are met, HMRC shall agree to notice being given after the relevant time limit.
(4) Condition A is that the appellant has made a request in writing to HMRC to agree to the notice being given.
(5) Condition B is that HMRC are satisfied that there was reasonable excuse for not giving the notice before the relevant time limit.
(6) Condition C is that HMRC are satisfied that request under subsection (4) was made without unreasonable delay after the reasonable excuse ceased.
(7) If a request of the kind referred to in subsection (4) is made, HMRC must notify the appellant whether or not HMRC agree to the appellant giving notice of appeal after the relevant time limit.
(8) In this section “relevant time limit”, in relation to notice of appeal, means the time before which the notice is to be given (but for this section).
223A Appeal: HMRC review or determination by tribunal
(1) This section applies if notice of appeal has been given to HMRC.
(2) In such a case—
(a) the appellant may notify HMRC that the appellant requires HMRC to review the matter in question (see section 223B),
(b) HMRC may notify the appellant of an offer to review the matter in question (see section 223C), or
(c) the appellant may notify the appeal to the tribunal (see section 223D).
(3) See sections 223G and 223H for provision about notifying appeals to the tribunal after a review has been required by the appellant or offered by HMRC.
(1) Subsections (2) and (3) apply if the appellant notifies HMRC that the appellant requires HMRC to review the matter in question.
(2) HMRC must, within the relevant period, notify the appellant of HMRC's view of the matter in question.
(3) HMRC must review the matter in question in accordance with section 223E.
(4) The appellant may not notify HMRC that the appellant requires HMRC to review the matter in question and HMRC shall not be required to conduct a review if—
(a) the appellant has already given a notification under this section in relation to the matter in question,
(b) HMRC have given a notification under section 223C in relation to the matter in question, or
(c) the appellant has notified the appeal to the court under section 222(3), the appropriate Lands tribunal under section 222(4), or the tribunal under section 223D.
(5) In this section “relevant period” means—
(a) the period of 30 days beginning with the day on which HMRC receive the notification from the appellant, or
(b) such longer period as is reasonable.
(1) Subsections (2) to (6) apply if HMRC notify the appellant of an offer to review the matter in question.
(2) When HMRC notify the appellant of the offer, HMRC must also notify the appellant of HMRC's view of the matter in question.
(3) If, within the acceptance period, the appellant notifies HMRC of acceptance of the offer, HMRC must review the matter in question in accordance with section 223E.
(4) If the appellant does not give HMRC such a notification within the acceptance period, HMRC's view of the matter in question shall be conclusive for the purposes of this Act.
(5) The same consequences shall follow for all purposes as would have followed if, on the date that HMRC gave notice of their view, the tribunal had determined the appeal in accordance with its terms.
(6) Subsection (4) does not apply to the matter in question if, or to the extent that, the appellant notifies the appeal to the tribunal under section 223H.
(7) HMRC may not notify the appellant of an offer to review the matter in question (and, accordingly, HMRC shall not be required to conduct a review) if—
(a) HMRC have already given a notification under this section in relation to the matter in question,
(b) the appellant has given a notification under section 223B in relation to the matter in question, or
(c) the appellant has notified the appeal to the court under section 222(3), the appropriate Lands tribunal under section 222(4) or the tribunal under section 223D.
(8) In this section “acceptance period” means the period of 30 days beginning with the date of the document by which HMRC notify the appellant of the offer to review the matter in question.
(1) This section applies if notice of appeal has been given to HMRC.
(2) The appellant may notify the appeal to the tribunal.
(3) If the appellant notifies the appeal to the tribunal, the tribunal is to decide the matter in question.
(4) Subsections (2) and (3) do not apply in a case where—
(a) HMRC have given a notification of their view of the matter in question under section 223B, or
(b) HMRC have given a notification under section 223C in relation to the matter in question.
(5) In a case falling within subsection (4)(a) or (b), the appellant may notify the appeal to the tribunal, but only if permitted to do so by section 223G or 223H.
(1) This section applies if HMRC are required by section 223B or 223C to review the matter in question.
(2) The nature and extent of the review are to be such as appear appropriate to HMRC in the circumstances.
(3) For the purpose of subsection (2), HMRC must, in particular, have regard to steps taken before the beginning of the review—
(a) by HMRC in deciding the matter in question, and
(b) by any person in seeking to resolve disagreement about the matter in question.
(4) The review must take account of any representations made by the appellant at a stage which gives HMRC a reasonable opportunity to consider them.
(5) The review may conclude that HMRC's view of the matter in question is to be—
(a) upheld,
(b) varied, or
(c) cancelled.
(6) HMRC must notify the appellant of the conclusions of the review and their reasoning within—
(a) the period of 45 days beginning with the relevant day, or
(b) such other period as may be agreed.
(7) In subsection (6) “relevant day” means—
(a) in a case where the appellant required the review, the day when HMRC notified the appellant of HMRC's view of the matter in question,
(b) in a case where HMRC offered the review, the day when HMRC received notification of the appellant's acceptance of the offer.
(8) Where HMRC are required to undertake a review but do not give notice of the conclusions within the time period specified in subsection (6), the review is to be treated as having concluded that HMRC's view of the matter in question (see sections 223B(2) and 223C(2)) is upheld.
(9) If subsection (8) applies, HMRC must notify the appellant of the conclusion which the review is treated as having reached.
(1) This section applies if HMRC give notice of the conclusions of a review (see section 223E(6) and (9)).
(2) The conclusions of the review shall be conclusive for the purposes of this Act.
(3) Subsections (2) and (3) do not apply to the matter in question if, or to the extent that, the appellant notifies the appeal to the tribunal under section 223G.
223G Notifying appeal to tribunal after review concluded
(1) This section applies if—
(a) HMRC have given notice of the conclusions of a review in accordance with section 223E, or
(b) the period specified in section 223E(6) has ended and HMRC have not given notice of the conclusions of the review.
(2) The appellant may notify the appeal to the tribunal within the post-review period.
(3) If the post-review period has ended, the appellant may notify the appeal to the tribunal only if the tribunal gives permission.
(4) If the appellant notifies the appeal to the tribunal, the tribunal is to determine the matter in question.
(5) The appellant may not notify the appeal to the tribunal under this section if the appeal has been notified to the court under section 222(3) or the appropriate Lands tribunal under section 222(4).
(6) In this section “post-review period” means—
(a) in a case falling within subsection (1)(a), the period of 30 days beginning with the date of the document in which HMRC give notice of the conclusions of the review in accordance with section 223E(6), or
(b) in a case falling within subsection (1)(b), the period that—
(i) begins with the day following the last day of the period specified in section 223E(6), and
(ii) ends 30 days after the date of the document in which HMRC give notice of the conclusion of the review in accordance with section 223E(9).
223H Notifying appeal to tribunal after review offered but not accepted
(1) This section applies if—
(a) HMRC have offered to review the matter in question (see section 223C), and
(b) the appellant has not accepted the offer.
(2) The appellant may notify the appeal to the tribunal within the acceptance period.
(3) But if the acceptance period has ended, the appellant may notify the appeal to the tribunal only if the tribunal gives permission.
(4) If the appellant notifies the appeal to the tribunal, the tribunal is to determine the matter in question.
(5) The appellant may not notify the appeal to the tribunal under this section if the appeal has been notified to the court under section 222(3) or the appropriate Lands tribunal under section 222(4).
(6) In this section “acceptance period” has the same meaning as in section 223C.
(1) In sections 223A to 223H—
(a) “matter in question” means the matter to which an appeal relates;
(b) a reference to a notification is a reference to a notification in writing.
(2) In sections 223A to 223H, a reference to the appellant includes a person acting on behalf of the appellant except in relation to—
(a) notification of HMRC's view under section 223B(2);
(b) notification by HMRC of an offer of review (and of their view of the matter) under section 223C;
(c) notification of the conclusions of a review under section 223E(6); and
(d) notification of the conclusions of a review under section 223E(9).
(3) But if a notification falling within any of the paragraphs of subsection (2) is given to the appellant, a copy of the notification may also be given to a person acting on behalf of the appellant.
If an appeal is notified to the tribunal, the tribunal must confirm the determination appealed against (or that determination as varied on a review under section 223E) unless the tribunal is satisfied that it ought to be varied (or further varied) or quashed.
(1) Except as otherwise provided by the following provisions of this Part of this Act, the tax on the value transferred by a chargeable transfer shall be due six months after the end of the month in which the chargeable transfer is made or, in the case of a transfer made after 5th April and before 1st October in any year otherwise than on death, at the end of April in the next year.
(2) Personal representatives shall, on delivery of their account, pay all the tax for which they are liable and may, on delivery of that account, also pay any part of the tax chargeable on the death for which they are not liable, if the persons liable for it request them to make the payment.
(3) So much of the tax chargeable on the value transferred by a chargeable transfer made within seven years . . . of the death of the transferor as—
(a) exceeds what it would have been had the transferor died more than seven years after the transfer . . .
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
shall be due six months after the end of the month in which the death occurs.
(3A) Without prejudice to subsection (3) above, the tax chargeable on the value transferred by a potentially exempt transfer which proves to be a chargeable transfer shall be due six months after the end of the month in which the transferor’s death occurs.
(3B) So much (if any) of the tax chargeable on the value transferred by a chargeable transfer made under Chapter III of Part III of this Act within the period of seven years ending with the settlor’s death as exceeds what it would have been had the settlor died more than seven years after the date of the transfer shall be due six months after the end of the month in which the death occurs.
(3C) Tax chargeable under Chapter 3 of Part 3 of this Act on the value transferred by a chargeable transfer, other than any for which the due date is given by subsection (3B) above, is due six months after the end of the month in which the chargeable transfer is made.
(4) Tax chargeable under section 32, 32A, 79 or 126 above or under Schedule 5 to this Act . . . shall be due six months after the end of the month in which the event by reason of which it is chargeable occurs.
(5) The Board may in the first instance, and without prejudice to the recovery of the remainder of the tax, accept or demand payment of an amount by reference to the value stated in an account delivered to the Board under section 216 or 217 above.
(6) Nothing in this section shall be taken to authorise the recovery from, or require the payment by, any person of tax in excess of his liability as limited by section 204 above.
226A Tax on notional pension property: withholding of benefits
(1) The personal representatives of a deceased person may give a notice to the scheme administrator of a registered pension scheme if they know that they are, or have reason to believe that they may be, liable for tax attributable to notional pension property of the deceased in relation to the scheme.
(2) A prospective personal representative of a deceased person may give a notice to the scheme administrator of a registered pension scheme if they have reason to believe that, on becoming a personal representative, they would be, or might be, liable for tax attributable to notional pension property of the deceased in relation to the scheme.
(3) In this section “withholding notice” means a notice under subsection (1) or (2).
(4) While a withholding notice has effect, no benefit may be paid under the scheme to a person (“P”) if—
(a) the total amount of benefits previously paid under the scheme to P on the deceased’s death exceeds 50% of P’s benefit entitlement, or
(b) the payment of the benefit would result in the total amount of benefits paid under the scheme to P on the deceased’s death exceeding 50% of P’s benefit entitlement.
(5) In subsection (4) a person’s “benefit entitlement” means so much of the value of the notional pension property of the deceased in relation to the scheme as is attributable on a just and reasonable apportionment, having regard to appropriate actuarial assumptions, to benefits that have been paid, or are or will be payable, to that person.
(6) Subsection (4) does not apply to the payment of an excluded benefit or an exempt benefit.
(7) A withholding notice has effect from the time when it is received by the scheme administrator until the earliest of the following—
(a) any time when it is withdrawn by —
(i) the personal representatives, or
(ii) if the person who gave the notice was a prospective personal representative, that person;
(b) any time when all the tax attributable to notional pension property of the deceased in relation to the scheme, and any interest due in respect of that tax, is paid;
(c) 15 months after the end of the month in which the deceased died.
(8) A withholding notice does not have effect unless it complies with any requirements prescribed by the Commissioners for His Majesty's Revenue and Customs as to form and content.
(9) The rules of a registered pension scheme are void so far as they purport to require a benefit to be paid in breach of subsection (4).
(10) A payment that would fall due but for a withholding notice instead falls due immediately after the notice ceases to have effect.
(11) For the consequences if a benefit is paid in breach of subsection (4), see section 210(3)(b) (joint liability of scheme administrator).
(12) In this section—
“prospective personal representative”, in relation to a deceased person, means a person who has reason to believe that they will become a personal representative of that person;
“registered club” has the same meaning as in Chapter 9 of Part 13 of the Corporation Tax Act 2010.
226B Tax on notional pension property: direct payment by scheme administrator
(1) A person (“the taxpayer”) may by notice (a “payment notice”) require the scheme administrator of a registered pension scheme to pay any tax for which the taxpayer is liable and which is attributable to the value of the notional pension property of a deceased member of the scheme.
(2) The scheme administrator must pay the amount of tax specified in a payment notice before the end of the period of 35 days beginning with the day on which they receive the notice, unless the notice—
(a) is withdrawn by the taxpayer during that period (and before the amount is paid), or
(b) does not comply with the requirements of subsection (3), or ceases to comply with them during that period (and before the amount is paid).
(3) The requirements are—
(a) that the payment notice specifies the amount of tax that it requires to be paid;
(b) that the amount specified is not less than £1,000;
(c) that the amount specified does not exceed the amount of tax for which the taxpayer is liable in respect of notional pension property of the deceased in relation to the scheme;
(d) that where the taxpayer is a beneficiary the amount specified does not exceed the difference between—
(i) the amount of the benefits payable to the beneficiary under the scheme on the deceased’s death, and
(ii) the amount that has already been paid on the deceased’s death in benefits to or for the benefit of the beneficiary under the scheme, or that has already been specified in a payment notice given by the beneficiary in relation to the deceased;
(e) that where the taxpayer is the deceased’s personal representatives the amount specified does not exceed the difference between—
(i) the amount of the benefits payable under the scheme on the deceased’s death, and
(ii) the amount that has already been paid on the deceased’s death in benefits under the scheme, or that has already been specified in a payment notice given by any person in relation to the deceased;
(f) that the payment notice complies with any requirements prescribed by the Commissioners for His Majesty's Revenue and Customs as to form and content.
(4) The references in subsection (3)(e) to benefits do not include excluded benefits or exempt benefits.
(5) The references in subsection (3)(d) and (e) to the amount of benefits payable under the scheme—
(a) include any amount that has been or will in future be payable, and
(b) in a case where the exact amount of benefits that will in future be payable cannot be known, are to be read as references to the amount that, having regard (in particular) to appropriate actuarial assumptions, can reasonably be expected to be paid.
(6) Where the scheme administrator pays an amount of tax under this section, a consequential adjustment may be made, on a basis that is just and reasonable having regard to appropriate actuarial assumptions and to any tax previously paid—
(a) where the taxpayer is a beneficiary, to that beneficiary’s entitlement to benefits under the scheme on the deceased’s death;
(b) where the taxpayer is the deceased’s personal representatives, to any person’s entitlement to benefits under the scheme on the deceased’s death.
(7) Any repayment under section 241 (overpayments) of tax paid by the scheme administrator under this section may, regardless of who the taxpayer is, be paid to—
(a) the deceased’s personal representatives, or
(b) any of the beneficiaries to whom an officer of Revenue and Customs considers the overpayment of tax to relate
(but may not be paid to the scheme administrator).
(8) The rules of a registered pension scheme are void so far as they purport to prohibit or restrict—
(a) the payment of tax by the scheme administrator as required under this section, or
(b) the making of a consequential adjustment under subsection (6) to a person’s entitlement to benefits under the scheme.
(9) In this section—
“beneficiary”, in relation to a deceased member of a pension scheme, means a person who receives or has a right to receive benefits under the scheme on the member’s death;
“tax” includes interest on tax.
(10) The Treasury may by regulations made by statutory instrument amend the figure for the time being mentioned in subsection (3)(b).
(11) A statutory instrument containing regulations under subsection (10) is subject to annulment in pursuance of a resolution of the House of Commons.
(12) For the consequences if the scheme administrator fails to comply with this section, see section 210(3)(b) (joint liability of scheme administrator).
227 Payment by instalments—land, shares and businesses.
(1) Where any of the tax payable on the value transferred by a chargeable transfer is attributable to the value of qualifying property and—
(a) the transfer is made on death, or
(b) the tax so attributable is borne by the person benefiting from the transfer, or
(c) the transfer is made under Part III of this Act and the property concerned continues to be comprised in the settlement,
the tax so attributable may, if the person paying it by notice in writing to the Board so elects, be paid by ten equal yearly instalments.
(1A) Subsection (1) above does not apply to—
(a) tax payable on the value transferred by a potentially exempt transfer which proves to be a chargeable transfer, or
(b) additional tax becoming payable on the value transferred by any chargeable transfer by reason of the transferor’s death within seven years of the transfer,
except to the extent that the tax is attributable to the value of property which satisfies one of the conditions specified in subsection (1C) below and, in the case of property consisting of unquoted shares or unquoted securities, the further condition specified in section 228(3A) below.
(1AA) In subsection (1A) above “unquoted”, in relation to any shares or securities, means not listed on a recognised stock exchange.
(1B) In this section“the transferee” means the person whose property the qualifying property became on the transfer or, where on the transfer the qualifying property became comprised in a settlement in which no qualifying interest in possession (within the meaning of Chapter III of Part III of this Act) subsists, the trustees of the settlement.
(1C) The conditions referred to in subsection (1A) above are—
(a) that the property was owned by the transferee throughout the period beginning with the date of the chargeable transfer and ending with the death of the transferor (or, if earlier, the death of the transferee), or
(b) that for the purposes of determining the tax, or additional tax, due by reason of the death of the transferor, the value of the property is reduced in accordance with the provisions of Chapter I or Chapter II or Part V of this Act by virtue of section 113B or section 124B above.
(2) In this section “qualifying property” means—
(a) land of any description, wherever situated;
(aa) property that is relevant business property for the purposes of Chapter 1 of Part 5;
(b) shares or securities to which section 228 below applies and that are not relevant business property for the purposes of that Chapter;
(c) a business or an interest in a business.
(3) The first of the instalments referred to in subsection (1) above shall be payable—
(a) if the chargeable transfer was made on death, six months after the end of the month in which the death occurred, and
(b) in any other case, at the time when the tax would be due if it were not payable by instalments;
and interest under section 233 below on the unpaid portion of the tax shall be added to each instalment and paid accordingly, except as otherwise provided in section 234 below.
(4) Notwithstanding the making of an election under this section, the tax for the time being unpaid, with interest to the time of payment, may be paid at any time; and if at any time (whether before or after the date when the first instalment is payable) the whole or any part of the property concerned is sold, the tax unpaid (or, in the case of a sale of part, the proportionate part of that tax) shall become payable forthwith (or, if the sale precedes the date when the first instalment is payable, on that date) together with any interest accrued under section 233 below.
(5) References in subsection (4) above to the sale of property shall have effect—
(a) in a case within subsection (1)(b) above other than a case within subsection (1A) above where the transferee dies before the transferor, as if they included references to any chargeable transfer in which the value transferred is wholly or partly attributable to the value of the property, other than a transfer made on death, and
(b) in a case within subsection (1)(c) above, as references to the property ceasing to be comprised in the settlement.
(6) For the purposes of subsection (4) above—
(a) the sale of an interest or part of an interest in a business shall be treated as a sale of part of the business, and
(b) the payment, under a partnership agreement or otherwise, of a sum in satisfaction of the whole or part of an interest in a business otherwise than on a sale shall be treated as a sale of the interest or part at the time of payment.
(7) For the purposes of this section—
(a) the value of a business or of an interest in a business shall be taken to be its net value;
(b) the net value of a business is the value of the assets used in the business (including goodwill) reduced by the aggregate amount of any liabilities incurred for the purposes of the business;
(c) in ascertaining the net value of an interest in a business, no regard shall be had to assets or liabilities other than those by reference to which the net value of the business would have fallen to be ascertained if the tax had been attributable to the entire business; and
(d) “business” includes a business carried on in the exercise of a profession or vocation, but does not include a business carried on otherwise than for gain.
(1) This section applies—
(a) to shares or securities of a company which immediately before the chargeable transfer gave control of the company—
(i) in the case of a transfer on death, to the deceased,
(ii) in the case of a transfer under Chapter III of Part III of this Act, to the trustees, and
(iii) in any other case, to the transferor;
(b) to shares or securities of a company which do not fall under paragraph (a) above and are unquoted, if the chargeable transfer is made on death and the condition stated in subsection (2) below is satisfied;
(c) to shares or securities of a company which do not fall under paragraph (a) above and are unoquoted, if the Board are satisfied that the tax attributable to their value cannot be paid on one sum without undue hardship (assuming, in the case of a chargeable transfer made otherwise than on death, that the shares or securities would be retained by the persons liable to pay the tax);
(d) to shares of a company which do not fall under paragraph (a) above and are unquoted, if the conditions stated in subsection (3) below are satisfied.
(2) The condition mentioned in subsection (1)(b) above is that not less than 20 per cent of so much of the tax chargeable on the value transferred as is tax for which the person paying the tax attributable as mentioned in section 227(1) above is liable (in the same capacity) consists of tax attributable to the value of the shares or securities or such other tax (if any) as may by virtue of section 227 be paid by instalments.
(3) The conditions mentioned in subsection (1)(d) above are that so much of the value transferred (calculated, if the transfer is not made on death, as if no tax were chargeable on it) as is attributable to the shares exceeds £20,000, and that either—
(a) the nominal value of the shares is not less than 10 per cent of the nominal value of all the shares of the company at the time of the transfer, or
(b) the shares are ordinary shares and their nominal value is not less than 10 per cent of the nominal value of all ordinary shares of the company at that time.
(3A) The further condition referred to in section 227(1A) above is that the shares or securities remained unquoted throughout the period beginning with the date of the chargeable transfer and ending with the death of the transferor (or, if earlier, the death of the transferee).
(4) In this section “ordinary shares” means shares which carry either—
(a) a right to dividends not restricted to dividends at a fixed rate, or
(b) a right to conversion into shares carrying such a right as is mentioned in paragraph (a) above.
(5) In this section “unquoted”, in relation to any shares or securities, means not listed on a recognised stock exchange.
Tax chargeable on such a chargeable transfer as is mentioned in section 129 above may, if the person paying the tax by notice in writing to the Board so elects, be paid by ten equal yearly instalments, of which the first shall be payable six months after the end of the month in which the transfer is made.
230 Acceptance of property in satisfaction of tax.
(1) The Board may, if they think fit and the Secretary of State agrees, on the application of any person liable to pay tax or interest payable under section 233 below, accept in satisfaction of the whole or any part of it any property to which this section applies.
(2) This section applies to any such land as may be agreed upon between the Board and the person liable to pay tax.
(3) This section also applies to any objects which are or have been kept in any building—
(a) if the Board have determined to accept or have accepted that building in satisfaction or part satisfaction of tax or of estate duty, or
(b) if the building or any interest in it belongs to Her Majesty in right of the Crown or of the Duchy of Lancaster, or belongs to the Duchy of Cornwall or belongs to a Government department or is held for the purposes of a Government department, or
(c) if the building is one of which the Secretary of State is guardian under the Ancient Monuments and Archaeological Areas Act 1979 , or of which the Welsh Ministers are guardians under Part 2 of the Historic Environment (Wales) Act 2023 or of which the Department of the Environment for Northern Ireland is guardian under the Historic Monuments and Archaeological Objects (Northern Ireland) Order 1995, or
(d) if the building belongs to any body within Schedule 3 to this Act,
in any case where it appears to the Secretary of State desirable for the objects to remain associated with the building.
(4) This section also applies to—
(a) any picture, print, book, manuscript, work of art, scientific object or other thing which the Secretary of State is satisfied is pre-eminent for its national, scientific, historic or artistic interest, and
(b) any collection or group of pictures, prints, books, manuscripts, works of art, scientific objects or other things if the Secretary of State is satisfied that the collection or group, taken as a whole, is pre-eminent for its national, scientific, historic or artistic interest.
(5) In this section—
. . .
“national interest” includes interest within any part of the United Kingdom;
and in determining under subsection (4) above whether an object or collection or group of objects is pre-eminent, regard shall be had to any significant association of the object, collection or group with a particular place.
(6) The functions of the Ministers under this section in relation to the acceptance, in satisfaction of tax, of property in which there is a Scottish interest may be exercised separately.
(7) For the purposes of subsection (6) a Scottish interest in the property exists–
(a) where the property is located in Scotland; or
(b) the person liable to pay the tax has expressed a wish or imposed a condition on his offer of the property in satisfaction of tax that it be displayed in Scotland or disposed of or transferred to a body or institution in Scotland.
231 Powers to transfer property in satisfaction of tax.
(1) Where a person has power to sell any property in order to raise money for the payment of tax, he may agree with the Board for the property to be accepted in satisfaction of that tax in pursuance of section 230 above; and, except as regards the nature of the consideration and its receipt and application, any such agreement shall be subject to the same provisions and shall be treated for all purposes as a sale made in the exercise of the said power, and any conveyance or transfer made or purporting to be made to give effect to such an agreement shall have effect accordingly.
(2) The references in subsection (1) above to tax include references to interest payable under section 233 below.
(3) This section shall not affect paragraph 1(4) or 3(4) of Schedule 5 to this Act.
Where proceedings are pending in any court for the administration of any property to the value of which any tax charged on the value transferred by a chargeable transfer is attributable, the court shall provide, out of any such property in the possession or control of the court, for the payment of any of the tax so attributable, or interest on it, which remains unpaid.
(1) If—
(a) an amount of tax charged on the value transferred by a chargeable transfer not within paragraph (aa) below and made after 5th April and before 1st October in any year and otherwise than on death remains unpaid after the end of the period ending with April in the next year, or
(aa) an amount of tax charged under Chapter 3 of Part 3 of this Act on the value transferred by a chargeable transfer remains unpaid after the end of the period of six months beginning with the end of the month in which the chargeable transfer was made, or
(b) an amount of tax charged on the value transferred by a chargeable transfer not within paragraph (a) or (aa) above remains unpaid after the end of the period of six months beginning with the end of the month in which the chargeable transfer was made, or
(c) an amount of tax chargeable under section 32, 32A, 79(3A) or 126 above or under Schedule 5 to this Act . . . remains unpaid after the end of the period of six months beginning with the end of the month in which the event occasioning the charge occurs,
then, subject to subsection (1A) below it shall carry interest from the end of that period at the rate applicable under section 178 of the Finance Act 1989.
(1A) If, under section 30 above, the Board agree to accept property in satisfaction of any tax on terms that the value to be attributed to the property for the purposes of that acceptance is determined as at a date earlier than that on which the property is actually accepted, the terms may provide that the amount of tax which is satisfied by the acceptance of the property shall not carry interest under this section from that date.
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) Interest payable under this section shall not be allowed as a deduction in computing any income, profits or losses for any tax purposes.
(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1) Where tax payable on the value transferred by a chargeable transfer—
(a) is payable by instalments under section 227 above and is attributable to —
(i) value treated as reduced under Chapter 1 or 2 of Part 5 of this Act, or
(ii) the value of any shares, securities, business or interest in a business, if that value is not treated as reduced under either Chapter of that Part, or
(b) is payable by instalments under section 229 above,
it shall, for the purposes of any interest to be added to each instalment, be treated as carrying interest from the date at which the instalment is payable.
(2) Subsection (1) above shall not apply to tax attributable to the value of shares or securities of a company falling within paragraph (a) of subsection (3) below that is not tax attributable to value treated as reduced under Chapter 1 or 2 of Part 5 of this Act unless it also falls within paragraph (b) or (c) of that subsection.
(3) The companies referred to in subsection (2) above are—
(a) any company whose business consists wholly or mainly of one or more of the following, that is to say, dealing in securities, stocks or shares, land or buildings, or making or holding investments;
(b) any company whose business consists wholly or mainly in being a holding company (as defined in section 1159 of and Schedule 6 to the Companies Act 2006) of one or more companies not falling within paragraph (a) above;
(c) any company—
(i) whose business is wholly that of a market maker or is that of a discount house and (in either case) is carried on in the United Kingdom, or
(ii) which is of a description set out in regulations under section 107(5) of the Finance Act 1986.
(4) In this section “market maker” means a person who—
(a) holds himself out at all normal times in compliance with the rules of The Stock Exchange as willing to buy and sell securities, stocks or shares at a price specified by him, and
(b) is recognised as doing so by the Council of The Stock Exchange.
(1) Any repayment of an amount paid in excess of a liability for tax or for interest on tax shall carry interest from the date on which the payment was made until the order for repayment is issued at the rate applicable under section 178 of the Finance Act 1989.
(2) Interest paid under this section shall not constitute income for any tax purposes.
(1) Section 233 above shall apply in relation to—
(a) the amount by which tax chargeable on the value transferred by a chargeable transfer made within seven years of the transferor’s death exceeds what it would have been had the transferor died more than seven years after the transfer, . . .
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
as if the chargeable transfer had been made on the death of the transferor.
(1A) Section 233 above shall apply in relation to the amount (if any) by which—
(a) the tax chargeable on the value transferred by a chargeable transfer made under Chapter III of Part III of this Act within the period of seven years ending with the settlor’s death,
exceeds
(b) what that tax would have been had the settlor died more than seven years after the date of the transfer,
as if the chargeable transfer had been made on the death of the settlor.
(2) Tax overpaid or underpaid in consequence of—
(a) section 146(1) above, or section 19(1) of the Inheritance (Provision for Family and Dependants) Act 1975, or
(b) the corresponding provision of the Inheritance (Provision for Family and Dependants) (Northern Ireland) Order 1979,
shall not carry interest for any period before the order there mentioned is made.
(3) Tax repayable on a claim under section 146(2), . . . or 150 above shall carry interest (which shall not constitute income for any tax purposes) at the rate applicable under section 178 of the Finance Act 1989 from the date on which the claim is made.
(4) Tax repayable under section 147(2) above shall carry interest (which shall not constitute income for any tax purposes) at the rate applicable under section 178 of the Finance Act 1989 from the date on which the tax was paid; and tax charged by virtue of section 147(4) above shall carry interest at that rate from the end of the period mentioned in section 233(1)(b) above.
(1) Except as otherwise provided, where any tax charged on the value transferred by a chargeable transfer, or any interest on it, is for the time being unpaid a charge for the amount unpaid (to be known as an Inland Revenue charge) is by virtue of this section imposed in favour of the Board on—
(a) any property to the value of which the value transferred is wholly or partly attributable, and
(b) where property becomes comprised in a settlement by virtue of the chargeable transfer or the chargeable transfer is made under Part III of this Act, any property comprised in the settlement.
(2) References in subsection (1) above to any property include references to any property directly or indirectly representing it.
(2A) Where tax is charged by virtue of Schedule A1 on the value transferred by a chargeable transfer, the reference in subsection (1)(a) to property to the value of which the value transferred is wholly or partly attributable includes the relevant UK property (within the meaning of that Schedule) to which the charge to tax relates.
(3) Where the chargeable transfer is made on death, personal or movable property situated in the United Kingdom which was beneficially owned by the deceased immediately before his death and vests in his personal representatives is not subject to the Inland Revenue charge; and for this purpose “personal property” does not include leaseholdsand undivided shares in land held on trust for sale, whether statutory or not, and the question whether any property was beneficially owned by the deceased shall be determined without regard to section 49(1) above.
(3A) In the case of a potentially exempt transfer which proves to be a chargeable transfer—
(a) property concerned, or an interest in property concerned, which has been disposed of to a purchaser before the transferor’s death is not subject to the Inland Revenue charge, but
(b) property concerned which has been otherwise disposed of before the death and property which at the death represents any property or interest falling within paragraph (a) above shall be subject to the charge;
and in this subsection “property concerned” means property to the value of which the value transferred by the transfer is wholly or partly attributable.
(3B) Subsection (3C) below applies to any tax charged—
(a) under section 32, 32A or 79(3A) above in respect of any property,
(b) under paragraph 8 of Schedule 4 to this Act in respect of any property, or
(c) under paragraph 1 or 3 of Schedule 5 to this Act with respect to any object or property.
(3C) Where any tax to which this subsection applies, or any interest on it, is for the time being unpaid, a charge for the amount unpaid is also by virtue of this section imposed in favour of the Board—
(a) except where the event giving rise to the charge was a disposal to a purchaser of the property or object in question, on that property or object; and
(b) in the excepted case, on any property for the time being representing that property or object.
(4) No heritable property situated in Scotland is subject to the Inland Revenue charge, but where such property is disposed of any other property for the time being representing it is subject to the charge to which the first-mentioned property would have been subject but for this subsection.
(5) The Inland Revenue charge imposed on any property shall take effect subject to any incumbrance on it which is allowable as a deduction in valuing that property for the purposes of the tax.
(6) Except as provided by section 238 below, a disposition of property subject to an Inland Revenue charge shall take effect subject to that charge.
(1) Where property subject to an Inland Revenue charge, or an interest in such property, is disposed of to a purchaser, then if at the time of the disposition—
(a) in the case of land in England and Wales, the charge was not registered as a land charge or, in the case of registered land, was not protected by notice on the register, or
(b) in the case of land in Northern Ireland the title to which is registered under the Land Registration Act (Northern Ireland) 1970, the charge was not entered as a burden on the appropriate register maintained under that Act or was not protected by a caution or inhibition under that Act or, in the case of other land in Northern Ireland, the purchaser had no notice of the facts giving rise to the charge, or
(c) in the case of personal property situated in the United Kingdom other than such property as is mentioned in paragraph (a) or (b) above, and of any property situated outside the United Kingdom, the purchaser had no notice of the facts giving rise to the charge, or
(d) in the case of any property, a certificate of discharge had been given by the Board under section 239 below and the purchaser had no notice of any fact invalidating the certificate,
the property or interest shall then cease to be subject to the charge but the property for the time being representing it shall be subject to it.
(2) Where property subject to an Inalnd Revenue charge, or an interest in such property, is disposed of to a purchaser in circumstances where it does not then cease to be subject to the charge, it shall cease to be subject to it at the end of the period of six years beginning with the later of—
(a) the date on which the tax became due, and
(b) the date on which a full and proper account of the property was first delivered to the Board in connection with the chargeable transfer concerned.
(3) In this section “the time of the disposition” means—
(a) in relation to registered land—
(i) if the disposition is required to be completed by registration, the time of registration, and
(ii) otherwise, the time of completion,
(b) in relation to other property, the time of completion.
(1) Where application is made to the Board by a person liable for any tax on the value transferred by a chargeable transfer which is attributable to the value of property specified in the application, the Board, on being satisfied that the tax so attributable has been or will be paid, may give a certificate to that effect, and shall do so if the chargeable transfer is one made on death or the transferor has died.
(2) Where tax is or may be chargeable on the value transferred by a transfer of value and—
(a) application is made to the Board after the expiration of two years from the transfer (or, if the Board think fit to entertain the application, at an earlier time) by a person who is or might be liable for the whole or part of the tax, and
(b) the applicant delivers to the Board, if the transfer is one made on death, a full statement to the best of his knowledge and belief of all property included in the estate of the deceased immediately before his death and, in any other case, a full and proper account under this Part of this Act,
the Board may, as the case requires, determine the amount of the tax or determine that no tax is chargeable; and subject to the payment of any tax so determined to be chargeable the Board may give a certificate of their determination, and shall do so if the transfer of value is one made on death or the transferor has died.
(2A) An application under subsection (1) or (2) above with respect to tax which is or may become chargeable on the value transferred by a potentially exempt transfer may not be made before the expiration of two years from the death of the transferor (except where the Board think fit to entertain the application at an earlier time after the death).
(3) Subject to subsection (4) below,—
(a) a certificate under subsection (1) above shall discharge the property shown in it from the Inland Revenue charge on its acquisition by a purchaser, and
(b) a certificate under subsection (2) above shall discharge all persons from any further claim for the tax on the value transferred by the chargeable transfer concerned and extinguish any Inland Revenue charge for that tax.
(4) A certificate under this section shall not discharge any person from tax in case of fraud or failure to disclose material facts and shall not affect any further tax—
(a) that may afterwards be shown to be payable by virtue of section 93, 142, 143, 144 or 145 above,
(aa) that may afterwards be shown to be payable by reason of too great an increase having been made under section 8A(3) or 124E(5), or
(b) that may be payable if any further property is afterwards shown to have been included in the estate of a deceased person immediately before his death;
but in so far as the certificate shows any tax to be attributable to the value of any property it shall remain valid in favour of a purchaser of that property without notice of any fact invalidating the certificate.
(4A) If—
(a) the personal representatives of a deceased person are given a certificate under subsection (2), and
(b) further property is afterwards shown to have been included in the estate of the deceased immediately before their death by virtue of section 150A(1) (notional pension property),
then despite subsection (4)(b) the personal representatives are not liable for any tax attributable to that further property unless the failure to disclose the property in the application under subsection (2) was due to carelessness on the part of the personal representatives.
(5) References in this section to a transfer of value, or to the value transferred by a transfer of value, shall be construed as including references to an occasion on which tax is chargeable under Chapter III of Part III of this Act (apart from section 79) or to the amount on which tax is then chargeable.
(1) Where too little tax has been paid in respect of a chargeable transfer the tax underpaid shall be payable with interest under section 233 above, whether or not the amount that has been paid was that stated as payable in a notice under section 221 above; but subject to section 239 above and to the following provisions of this section.
(2) Where tax attributable to the value of any property is paid in accordance with an account duly delivered to the Board under this Part of this Act and the payment is made and accepted in full satisfaction of the tax so attributable, no proceedings shall be brought for the recovery of any additional tax so attributable after the end of the period of 4 years beginning with the later of—
(a) the date on which the payment (or in the case of tax paid by instalments the last payment) was made and accepted, and
(b) the date on which the tax or the last instalment became due;
and at the end of that period any liability for the additional tax and any Inland Revenue charge for that tax shall be extinguished.
(3) Subsection (2) has effect subject to subsections (4) to (5A) and to section 240B (underpayments involving offshore matter etc).
(4) Proceedings in a case involving a loss of tax brought about carelessly by a person liable for the tax (or a person acting on behalf of such a person) may be brought at any time not more than 6 years after the later of the dates in subsection (2)(a) and (b).
(5) Proceedings in a case involving a loss of tax brought about deliberately by a person liable for the tax (or a person acting on behalf of such a person) may be brought at any time not more than 20 years after the later of the dates in subsection (2)(a) and (b).
(5A) Proceedings in a case involving a loss of tax attributable to arrangements which were expected to give rise to a tax advantage in respect of which a person liable for the tax was under an obligation to make a report under section 253 of the Finance Act 2014 (duty to notify Commissioners of promoter reference number) but failed to do so, may be brought at any time not more than 20 years after the later of the dates in subsection (2)(a) and (b).
(6) Subsection (7) applies to any case not falling within subsection (2) where too little tax has been paid in respect of a chargeable transfer, provided that the case does not involve a loss of tax brought about deliberately by a person liable for the tax (or a person acting on behalf of such a person).
(7) Where this subsection applies—
(a) no proceedings are to be brought for the recovery of the tax after the end of the period of 20 years beginning with the date on which the chargeable transfer was made, and
(b). at the end of that period any liability for the tax and any Inland Revenue charge for that tax is extinguished.
(8) In relation to cases of tax chargeable under Chapter 3 of Part 3 of this Act (apart from section 79), the references in subsections (4) to (6) to a person liable for the tax are to be treated as including references to a person who is the settlor in relation to the settlement.