(1) This section applies for the purposes of section 240.
(2) A loss of tax is brought about carelessly by a person if the person fails to take reasonable care to avoid bringing about that loss.
(3) Where—
(a) information is provided to Her Majesty's Revenue and Customs,
(b) the person who provided the information, or the person on whose behalf the information was provided, discovers some time later that the information was inaccurate, and
(c) that person fails to take reasonable steps to inform Her Majesty's Revenue and Customs,
any loss of tax brought about by the inaccuracy is to be treated as having been brought about carelessly by that person.
(4) References to a loss of tax brought about deliberately by a person include a loss of tax brought about as a result of a deliberate inaccuracy in a document given to Her Majesty's Revenue and Customs by or on behalf of that person.
(1) This section applies in a case within section 240(2) which involves a loss of tax in relation to a chargeable transfer, where—
(a) the lost tax involves an offshore matter, or
(b) the lost tax involves an offshore transfer which makes the lost tax significantly harder to identify.
(2) Proceedings for the recovery of the lost tax may be brought at any time not more than 12 years after the later of the dates in section 240(2)(a) and (b).
(3) Lost tax “involves an offshore matter” if it is charged on or by reference to property which is situated or held in a territory outside the United Kingdom at, or immediately after, the time of the chargeable transfer.
(4) Lost tax “involves an offshore transfer” if—
(a) it does not involve an offshore matter, and
(b) the property is transferred to a territory outside the United Kingdom at a relevant time.
(5) In subsection (4)(b) “relevant time” means a time after the chargeable transfer but before—
(a) the date on which an account under section 216 is delivered to HMRC in relation to the chargeable transfer, or
(b) any later date on which an account under section 217 is so delivered.
(6) Where lost tax involves an offshore transfer, the cases in which the transfer makes the lost tax significantly harder to identify include any case where, because of the transfer—
(a) HMRC was significantly less likely to become aware of the lost tax, or
(b) HMRC was likely to become aware of the lost tax only at a significantly later time.
(7) But proceedings may not be brought under this section if—
(a) before the last date on which the proceedings could otherwise be brought, HMRC received relevant overseas information on the basis of which HMRC could reasonably have been expected to become aware of the lost tax, and
(b) it was reasonable to expect the proceedings to be brought before that date.
(8) In subsection (7)(a) “relevant overseas information” means information which is provided to HMRC by an authority in a territory outside the United Kingdom under—
(a) any provision of EU law relating to any tax, or
(b) an agreement to which the United Kingdom and that territory are parties, with or without other parties.
(9) This section is subject to any provision of this Act which allows for a longer period for the bringing of proceedings.
(1) If it is proved to the satisfaction of the Board that too much tax has been paid on the value transferred by a chargeable transfer or on so much of that value as is attributable to any property, the Board shall repay the excess unless the claim for repayment was made more than 4 years after the date on which the payment or last payment of the tax was made.
(2) References in this section to tax include references to interest on tax.
(1) The Board shall not take any legal proceedings for the recovery of any amount of tax or of interest on tax which is due from any person unless the amount has been agreed in writing between that person and the Board or has been determined and specified in a notice under section 221 above.
(2) Where an amount has been so determined and specified but an appeal to which this subsection applies is pending against the determination the Board shall not take any legal proceedings to recover the amount determined except such part of it as may be agreed in writing or determined and specified in a further notice under section 221 above to be a part not in dispute.
(3) Subsection (2) above applies to any appeal under section 222 above but not to any further appeal; and section 222 above shall have effect, in relation to a determination made in pursuance of subsection (2) above, as if subsections (4) to (4B) of that section were omitted.
(4) Where a person has been given an accelerated payment notice under Chapter 3 of Part 4 of the Finance Act 2014 and that notice has not been withdrawn, nothing in this section prevents legal proceedings being taken for the recovery of (as the case may be)—
(a) the understated tax to which the payment specified in the notice under section 220(2)(b) of that Act relates, or
(b) the disputed tax specified in the notice under section 221(2)(b) of that Act.
In Scotland, tax and interest on tax may, without prejudice to any other remedy, and if the amount of the tax and interest does not exceed the sum for the time being specified in section 35(1)(a) of the Sheriff Courts (Scotland) Act 1971, be sued for and recovered in the sheriff court.
An officer of the Board who is authorised by the Board to do so may address the court in any proceedings in a . . . sheriff court for the recovery of tax or interest on tax.
(1) This section applies where a person (“the taxpayer”) fails to deliver an account under section 216 or 217 above.
(2) The taxpayer shall be liable—
(a) to a penalty of £100; and
(b) to a further penalty not exceeding £60 for every day after the day on which the failure has been declared by a court or the tribunal and before the day on which the account is delivered.
(3) If—
(a) proceedings in which the failure could be declared are not commenced before the end of the relevant period, and
(b) the taxpayer has not delivered the account by the end of that period,
he shall be liable to a further penalty of £100.
(4) In subsection (3) above “the relevant period” means the period of six months beginning immediately after the end of the period given by section 216(6) or (7) or section 217 above (whichever is applicable).
(4A) Without prejudice to any penalties under subsections (2) and (3) above, if—
(a) the failure by the taxpayer to deliver the account continues after the anniversary of the end of the period given by section 216(6) or (7) (whichever is applicable), and
(b) there would have been a liability to tax shown in the account,
the taxpayer shall be liable to a penalty of an amount not exceeding £3,000.
(5) If the taxpayer proves that his liability to tax does not exceed a particular amount, the penalty under subsection (2)(a) above, together with any penalty under subsection (3) above, shall not exceed that amount.
(6) A person shall not be liable to a penalty under subsection (2)(b) above if he delivers the account required by section 216 or 217 before proceedings in which the failure could be declared are commenced.
(7) A person who has a reasonable excuse for failing to deliver an account shall not be liable by reason of that failure to a penalty under this section, unless he fails to deliver the account without unreasonable delay after the excuse has ceased.
(1) A person who fails to make a return under section 218 above shall be liable—
(a) to a penalty not exceeding £300; and
(b) to a further penalty not exceeding £60 for every day after the day on which the failure has been declared by a court or the tribunal and before the day on which the return is made.
(1A) A person who fails to comply with the requirements of section 218A above shall be liable—
(a) to a penalty not exceeding £100; and
(b) to a further penalty not exceeding £60 for every day after the day on which the failure has been declared by a court or the tribunal and before the day on which the requirements are complied with.
(1B) Without prejudice to any penalties under subsection (1A) above, if a person continues to fail to comply with the requirements of section 218A after the anniversary of the end of the period of six months referred to in section 218A(1), he shall be liable to a penalty of an amount not exceeding £3,000.
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4) A person shall not be liable to a penalty under subsection (1)(b) or (1A)(b) above if—
(a) he makes the return required by section 218 above, or
(aa) he complies with the requirements of section 218A above,
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
before proceedings in which the failure could be declared are commenced.
(5) A person who has a reasonable excuse for failing to make a return or to comply with the requirements of section 218A shall not be liable by reason of that failure to a penalty under this section, unless he fails to make the return or to comply with those requirements without unreasonable delay after the excuse has ceased.
(1) If after any . . . information or document has been . . . furnished or produced by any person without fraud or negligence it comes to his notice that it was incorrect in any material respect it shall be treated for the purposes of section 247 above as having been negligently . . . furnished or produced unless the error is remedied without unreasonable delay.
(2) If after any account, information or document has been delivered, furnished or produced by any person in pursuance of this Part of this Act it comes to the notice of any other person that it contains an error whereby tax for which that other person is liable has been or might be underpaid, that other person shall inform the Board of the error; and if he fails to do so without unreasonable delay he shall be liable to the penalty to which he would be liable . . . if the account, information or document had been delivered, furnished or produced by him and the case were one of negligence.
(1) All proceedings for the recovery of penalties under this Part of this Act shall be commenced by the Board, or in Scotland, by the Board or the Lord Advocate.
(2) Any such proceedings may be commenced either before the First-tier Tribunal or in the High Court or the Court of Session and shall, if brought in the High Court, be deemed to be civil proceedings by the Crown within the meaning of Part II of the Crown Proceedings Act 1947 or, as the case may be, that Part as for the time being in force in Northern Ireland.
(3) Where any proceedings are brought before the First-tier Tribunal, in addition to any right of appeal on a point of law under section 11(2) of the TCEA 2007, the person liable to the penalty may appeal to the Upper Tribunal against the amount of a penalty which has been determined under this Part, but not against any decision which falls under section 11(5)(d) and (e) of the TCEA 2007 and was made in connection with the determination of the amount of the penalty.
(3A) Section 11(3) and (4) of the TCEA 2007 applies to the right of appeal under subsection (3) as it applies to the right of appeal under section 11(2) of the TCEA 2007.
(3B) On an appeal under this section the Upper Tribunal has the same powers as are conferred on the First-tier Tribunal by virtue of this section.
(4) The person liable to the penalty shall be a party to the proceedings.
(5) References in this section to the Court of Session are references to that Court as the Court of Exchequer in Scotland.
(1) No proceedings for the recovery of a penalty under this Part of this Act shall be brought after the end of the period of three years beginning with the date on which the amount of the tax properly payable in respect of the chargeable transfer concerned was notified by the Board to the person or one of the persons liable for the tax or any part of it.
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Board may in their discretion mitigate any penalty, or stay or compound any proceedings for recovery of any penalty, and may also, after judgment, further mitigate or entirely remit the penalty.
(1) For the purposes of the preceding provisions of this Part of this Act, a notice under section 221 above specifying any determination which can no longer be varied or quashed on appeal shall be sufficient evidence of the matters determined.
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
255 Determination of questions on previous view of law.
Where any payment has been made and accepted in satisfaction of any liability for tax and on a view of the law then generally received or adopted in practice, any question whether too little or too much has been paid or what was the right amount of tax payable shall be determined on the same view, notwithstanding that it appears from a subsequent legal decision or otherwise that the view was or may have been wrong.
(1) The Board may make regulations—
(a) dispensing with the delivery of accounts under section 216 above in such cases as may be specified in or determined under the regulations;
(aa) requiring persons who by virtue of regulations under paragraph (a) above are not required to deliver accounts under section 216 above to produce to the Board, in such manner as may be specified in or determined under the regulations, such information or documents as may be so specified or determined
(b) discharging, subject to such restrictions as may be so specified or determined , property from an Inland Revenue charge and persons from further claims for tax in cases other than those mentioned in section 239 above;
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(d) modifying section 264(8) below in cases where the delivery of an account has been dispensed with under the regulations.
(1A) Regulations under subsection (1)(aa) may in particular—
(a) provide that information or documents must be produced to the Board by producing it or them to—
(i) a probate registry in England and Wales;
(ii) the sheriff in Scotland;
(iii) the Probate and Matrimonial Office in Northern Ireland;
(b) provide that information or documents produced as specified in paragraph (a) is or are to be treated for any or all purposes of this Act as produced to the Board;
(c) provide for the further transmission to the Board of information or documents produced as specified in paragraph (a).
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) Regulations under this section may contain such supplementary or incidental provisions as the Board think fit and may make different provision for different cases .
(3A) Regulations under this section may only be made—
(a) in relation to England and Wales, after consulting the Lord Chancellor;
(b) in relation to Scotland, after consulting the Scottish Ministers;
(c) in relation to Northern Ireland, after consulting the Lord Chief Justice of Northern Ireland.
(3B) The Lord Chief Justice of Northern Ireland may nominate any of the following to exercise his functions under subsection (3A)—
(a) the holder of one of the offices listed in Schedule 1 to the Justice (Northern Ireland) Act 2002;
(b) a Lord Justice of Appeal (as defined in section 88 of that Act).
(4) The power to make regulations under this section shall be exercisable by statutory instrument, which shall be subject to annulment in pursuance of a resolution of the House of Commons.
(1) All accounts and other documents required for the purposes of this Act shall be in such form and shall contain such particulars as may be prescribed by the Board.
(2) All accounts to be delivered to the Board under this Act shall be supported by such books, papers and other documents, and verified (whether on oath or otherwise) in such manner, as the Board may require.
(3) For the purposes of this Act, an account delivered to a probate registry pursuant to arrangements made between the President of the Family Division and the Board or delivered to the Probate and Matrimonial Office in Northern Ireland pursuant to arrangements made between the Lord Chief Justice of Northern Ireland and the Board shall be treated as an account delivered to the Board.
(4) The Lord Chief Justice of Northern Ireland may nominate any of the following to exercise his functions under subsection (3)—
(a) the holder of one of the offices listed in Schedule 1 to the Justice (Northern Ireland) Act 2002;
(b) a Lord Justice of Appeal (as defined in section 88 of that Act).
A notice or other document which is to be served on a person under this Act may be delivered to him or left at his usual or last known place of residence or served by post, addressed to him at his usual or last known place of residence or his place of business or employment.
Section 16 of the Stamp Act 1891, section 56 of the Finance Act 1946 and section 27 of the Finance (No.2) Act (Northern Ireland) 1946 (inspection of public records and records of unit trusts) shall apply in relation to inheritance tax as they apply in relation to stamp duties.
In the application of this Part of this Act to Scotland, references to an account required to be delivered to the Board by the personal representatives of a deceased person, however expressed, shall be construed as references to such an inventory or additional inventory as is mentioned in section 38 of the Probate and Legacy Duties Act 1808 which has been duly exhibited as required by that section.
262 Tax chargeable in certain cases of future payments, etc.
(1) Where a disposition made for a consideration in money or money’s worth is a transfer of value and any payments made or assets transferred by the transferor in pursuance of the disposition are made or transferred more than one year after the disposition is made, tax (if any) shall be charged as if—
(a) any payment made or asset transferred in pursuance of the disposition were made or transferred in pursuance of a separate disposition made, without consideration, at the time the payment is made or the asset is transferred, and
(b) the amount of the payment made or the value of the asset transferred in pursuance of each of those separate dispositions were the chargeable portion of the payment or asset.
(2) For the purposes of this section the chargeable portion of any payment made or any asset transferred at any time shall be such portion of its value at that time as is found by applying to it the fraction of which—
(a) the numerator is the value actually transferred by the disposition first mentioned in subsection (1) above (calculated as if no tax were payable on it), and
(b) the denominator is the value, at the time of that disposition, of the aggregate of the payments made or to be made and assets transferred or to be transferred by the transferor in pursuance of it.
263 Annuity purchased in conjunction with life policy.
(1) Where—
(a) a policy of life insurance is issued in respect of an insurance made after 26th March 1974 or is after that date varied or substituted for an earlier policy, and
(b) at the time the insurance is made or at any earlier or later date an annuity on the life of the insured is purchased, and
(c) the benefit of the policy is vested in a person other than the person who purchased the annuity,
then, unless it is shown that the purchase of the annuity and the making of the insurance (or, as the case may be, the substitution or variation) were not associated operations, the person who purchased the annuity shall be treated as having made a transfer of value by a disposition made at the time the benefit of the policy became so vested (to the exclusion of any transfer of value which, apart from this section, he might have made as a result of the vesting, or of the purchase and the vesting being associated operations).
(2) The value transferred by that transfer of value shall be equal to whichever of the following is less, namely,—
(a) the aggregate of—
(i) the value of the consideration given for the annuity, and
(ii) any premium paid or other consideration given under the policy on or before the transfer; and
(b) the value of the greatest benefit capable of being conferred at any time by the policy, calculated as if that time were the date of the transfer.
(3) The preceding provisions of this section shall apply, with the necessary modifications, where a contract for an annuity payable on a person’s death is after 26th March 1974 made or varied or substituted for or replaced by such a contract or a policy of life insurance as they apply where a policy of life insurance is issued, varied or substituted as mentioned in subsection (1) above.
(1) This section has effect where a person has made a transfer of value (“the earlier transfer”) which—
(a) is not notified to the Board in an account under section 216 above or by information furnished under section 219 above before the expiration of the period specified in section 216 for the delivery of accounts, and
(b) is not discovered until after payment has been accepted by the Board in full satisfaction of the tax on the value transferred by another transfer of value (“the later transfer”) made by him on or after the day on which he made the earlier transfer.
(2) Where the earlier transfer is made in the period of ten years ending with the date of the later transfer there shall be charged on the value transferred by the earlier transfer, in addition to any tax chargeable on it apart from this section, an amount of tax equal to the difference, if any, between—
(a) the tax which, having regard to the earlier transfer, was properly chargeable on the value transferred by the later transfer, and
(b) the payment accepted by the Board in full satisfaction of the tax chargeable on that value;
and any such difference shall not be chargeable on the value transferred by the later transfer.
(3) Where in the period mentioned in subsection (2) above there have been two or more earlier transfers the reference in paragraph (a) of that subsection to the earlier transfer shall be construed as a reference to both or all of those transfers, but the amount of tax chargeable under that subsection in respect of each of them shall, subject to subsection (4) below, be reduced in the proportion which the value transferred by it bears to the aggregate of the values transferred by it and the other or others.
(4) Where the earlier transfers mentioned in subsection (3) above include a settled transfer, that is to say, a transfer in the case of which an amount in full satisfaction of the tax chargeable in respect of it under subsection (2) above has been paid to and accepted by the Board before the discovery of one or more of the other earlier transfers,—
(a) no further tax shall be chargeable under subsection (2) above in respect of the settled transfer in consequence of regard being had under paragraph (a) of that subsection to the subsequently discovered transfer or transfers;
(b) the amount so paid and accepted shall reduce the amount chargeable under subsection (2) above in respect of the subsequently discovered transfer or transfers; and
(c) if there are two or more subsequently discovered transfers, the value transferred by the settled transfer shall be disregarded in calculating under subsection (3) above the reduction in the amount of tax chargeable in respect of each of them.
(5) Where the later transfer referred to in subsection (2) above is itself an earlier transfer in relation to another later transfer the references in paragraphs (a) and (b) of that subsection to tax chargeable on the value transferred by it are references to tax so chargeable apart from this section.
(6) Subsection (2) above shall not increase the amount in respect of which interest is payable under section 233 above in relation to the earlier transfer in respect of any period falling before the expiration of six months from the date on which it was discovered.
(7) Where, apart from this subsection, the earlier transfer would be wholly or partly exempt by reason of some or all of the value transferred by it falling within a limit applicable to an exemption, then, if tax has been accepted as mentioned in subsection (1)(b) above on the basis that the later transfer is partly exempt by reason of part of the value thereby transferred falling within that limit—
(a) tax shall not be chargeable on that part of the value transferred by the later transfer, but
(b) a corresponding part of the value transferred by the earlier transfer shall be treated as falling outside that limit.
(8) Subsection (1)(b) above shall apply to a transfer in respect of which no tax is chargeable because the rate of tax applicable under section 7 above is nil as if payment had been accepted when the transfer was notified in an account under section 216 above, and subsection (2)(b) above shall apply in relation to any such transfer as if the amount of the payment were nil.
(9) For the purposes of this section a transfer is discovered—
(a) if it is notified under the provisions mentioned in subsection (1)(a) above after the expiration of the period there mentioned, on the date on which it is so notified;
(b) in any other case, on the date on which the Board give notice of a determination in respect of the transfer under section 221 above.
265 Chargeable transfers affecting more than one property.
Where the value transferred by a chargeable transfer is determined by reference to the values of more than one property the tax chargeable on the value transferred shall be attributed to the respective values in the proportions which they bear to their aggregate, but subject to section 54B(3) above and to any provision reducing the amount of tax attributable to the value of any particular property.
(1) Where the value transferred by more than one chargeable transfer made by the same person on the same day depends on the order in which the transfers are made, they shall be treated as made in the order which results in the lowest value chargeable.
(2) Subject to subsection (1) above, the rate at which the tax is charged on the values transferred by two or more chargeable transfers made by the same person on the same day shall be the effective rate at which tax would have been charged if those transfers had been a single chargeable transfer of the same total value.
(3) The chargeable transfers referred to in subsections (1) and (2) above do not include a transfer made on the death of the transferor.
(4) Chargeable transfers under Chapter III of Part III of this Act shall if they relate to the same settlement be treated for the purposes of subsections (1) and (2) above as made by the same person.
267ZA Election to be treated as domiciled in United Kingdom
(1) A person may, if condition A or B is met, elect to be treated for the purposes of this Act as domiciled in the United Kingdom (and not elsewhere).
(2) A person's personal representatives may, if condition B is met, elect for the person to be treated for the purposes of this Act as domiciled in the United Kingdom (and not elsewhere).
(3) Condition A is that, at any time before 6 April 2025 but during the period of 7 years ending with the date on which the election is made, the person had a spouse or civil partner who was domiciled in the United Kingdom.
(4) Condition B is that a person (“the deceased”) dies and, at any time before 6 April 2025 but within the period of 7 years ending with the date of death, the deceased was—
(a) domiciled in the United Kingdom, and
(b) the spouse or civil partner of the person who would, by virtue of the election, be treated as domiciled in the United Kingdom.
(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6) An election under this section is to be ignored—
(a) in interpreting any such provision as is mentioned in section 158(6), and
(b) in determining the effect of any qualifying double taxation relief arrangements in relation to a transfer of value by the person making the election.
(7) For the purposes of subsection (6)(b) a qualifying double taxation relief arrangement is an arrangement which is specified in an Order in Council made under section 158 before the coming into force of this section (other than by way of amendment by an Order made on or after the coming into force of this section).
(8) In determining for the purposes of this section whether a person making an election under this section was domiciled in the United Kingdom, section 267 (deemed domicile) is to be ignored.
267ZB Section 267ZA: further provision about election
(1) For the purposes of this section—
(a) references to a lifetime election are to an election made by virtue of section 267ZA(3), and
(b) references to a death election are to an election made by virtue of section 267ZA(4).
(2) A lifetime or death election is to be made by notice in writing to HMRC.
(3) A lifetime or death election is treated as having taken effect on a date specified, in accordance with subsection (4), in the notice.
(4) The date specified in a notice under subsection (3) must—
(a) be 5 April 2025 or an earlier date,
(b) be within the period of 7 years ending with—
(i) in the case of a lifetime election, the date on which the election is made, or
(ii) in the case of a death election, the date of the deceased's death, and
(c) meet the condition in subsection (5).
(5) The condition in this subsection is met by a date if, on the date—
(a) in the case of a lifetime election—
(i) the person making the election was married to, or in a civil partnership with, the spouse or civil partner, and
(ii) the spouse or civil partner was domiciled in the United Kingdom, or
(b) in the case of a death election—
(i) the person who is, by virtue of the election, to be treated as domiciled in the United Kingdom was married to, or in a civil partnership with, the deceased, and
(ii) the deceased was domiciled in the United Kingdom.
(6) A death election may only be made within 2 years of the death of the deceased or such longer period as an officer of Revenue and Customs may in the particular case allow.
(7) Subsection (8) applies if—
(a) a lifetime or death election is made,
(b) a disposition is made, or another event occurs, during the period beginning with the time when the election is treated by virtue of subsection (3) as having taken effect and ending at the time when the election is made, and
(c) the effect of the election being treated as having taken effect at that time is that the disposition or event gives rise to a transfer of value.
(8) This Act applies with the following modifications in relation to the transfer of value—
(a) subsections (1) and (6)(c) of section 216 have effect as if the period specified in subsection (6)(c) of that section were the period of 12 months from the end of the month in which the election is made, and
(b) sections 226 and 233 have effect as if the transfer were made at the time when the election is made.
(9) A lifetime or death election cannot be revoked.
(10) If a person who made an election under section 267ZA(1) is not resident in the United Kingdom for the purposes of income tax for a period of four successive tax years beginning at any time after the election is made, the election ceases to have effect at the end of that period.
267ZC Election to be treated as a long-term UK resident
(1) A person (“P”) who would not otherwise be a long-term UK resident is treated as one for the purposes of this Act at any time when an election under this section has effect.
(2) An election under this section may be made—
(a) if condition A or B is met, by P;
(b) if condition B is met, by P’s personal representatives.
(3) Condition A is that, at any time within the period of 7 years ending with the date on which the election is made, P had a spouse or civil partner who was a long-term UK resident.
(4) Condition B is that a person (“the deceased”) dies and, at any time within the period of 7 years ending with the date of their death, the deceased was—
(a) a long-term UK resident, and
(b) the spouse or civil partner of P.
267ZD Further provision about elections under section 267ZC
(1) An election under section 267ZC—
(a) must be made by notice in writing to HMRC, and
(b) has effect from such date as is, in accordance with subsection (2), specified in the notice.
(2) The date specified in a notice under subsection (1)(a) (“the specified date”) must—
(a) be after 5 April 2025,
(b) be within the period of 7 years ending with—
(i) in the case of a lifetime election, the date on which the election is made;
(ii) in the case of a death election, the date of the deceased's death, and
(c) meet the condition in subsection (3).
(3) The condition is that—
(a) in the case of a lifetime election—
(i) the person making the election was, on the specified date, married to or in a civil partnership with the spouse or civil partner, and
(ii) the spouse or civil partner was, on the specified date, a long-term UK resident;
(b) in the case of a death election—
(i) the person who is, by virtue of the election, to be treated as a long-term UK resident was, on the specified date, married to or in a civil partnership with the deceased, and
(ii) the deceased was, on the specified date, a long-term UK resident.
(4) A death election may only be made within—
(a) the period of 2 years beginning with the date of the deceased’s death, or
(b) such longer period as an officer of Revenue and Customs may in the particular case allow.
(5) Subsection (6) applies if—
(a) an election is made under section 267ZC,
(b) a disposition is made, or another event occurs, during the period beginning with the date on which the election first has effect and ending with the date on which the election is made, and
(c) the effect of the election is that the disposition or event gives rise to a transfer of value.
(6) This Act applies with the following modifications in relation to the transfer of value—
(a) subsections (1) and (6)(c) of section 216 (delivery of accounts) have effect as if the period specified in subsection (6)(c) of that section were the period of 12 months from the end of the month in which the election is made, and
(b) sections 226 (payment: general rules) and 233 (interest on unpaid tax) have effect as if the transfer were made at the time when the election is made.
(7) An election under section 267ZC cannot be revoked.
(8) If a person who made an election under section 267ZC is, for a period of 10 successive tax years beginning after the date on which the election is made, not resident in the United Kingdom, the election ceases to have effect at the end of that period.
(9) For the purposes of this section—
“death election” means an election made under section 267ZC in circumstances where Condition B in subsection (4) of that section is met;
“lifetime election” means any other election made under section 267ZC.
267ZE Subject of domicile election treated as a long-term UK resident
(1) This section applies where an election under section 267ZA has effect in relation to a person immediately before 6 April 2025 (whether the election was made before or after that date).
(2) The person is treated for the purposes of this Act (so far as would not otherwise be the case)—
(a) as being a long-term UK resident, and
(b) as having been one at all times on and after 6 April 2025.
(3) But if the person is not resident in the United Kingdom for a relevant lapse period beginning at any time after the election is made, subsection (2) ceases to apply to them at the end of that period.
(4) In subsection (3) “relevant lapse period” means—
(a) if the election was made before 30 October 2024, a period of 4 successive tax years;
(b) if the election was made on or after that date, a period of 10 successive tax years.
267ZF Double taxation conventions operating by reference to deemed domicile
(1) This section applies to a case in which the application of any arrangements having effect under section 158 (double taxation conventions) depends (to any extent) on whether a person is treated as domiciled in the United Kingdom for the purposes of inheritance tax.
(2) The person is treated as domiciled in the United Kingdom for the purposes of inheritance tax if they are a long-term UK resident.
(3) Sections 276ZC to 267ZE (persons treated as long-term resident by virtue of election) are to be disregarded in applying this section in relation to any arrangements that are specified in an Order in Council made under section 158 of IHTA 1984 before 17 July 2013 (other than by way of amendment by an Order made on or after that date).
(4) Nothing in this section affects the interpretation of any such arrangements as are mentioned in section 158(6) (certain pre-1975 arrangements).
For the purposes of this Act and any other enactments relating to inheritance tax—
(a) property to which a limited liability partnership is entitled, or which it occupies or uses, shall be treated as property to which its members are entitled, or which they occupy or use, as partners,
(b) any business carried on by a limited liability partnership shall be treated as carried on in partnership by its members,
(c) incorporation, change in membership or dissolution of a limited liability partnership shall be treated as formation, alteration or dissolution of a partnership, and
(d) any transfer of value made by or to a limited liability partnership shall be treated as made by or to its members in partnership (and not by or to the limited liability partnership as such).
(1) In this Act “associated operations” means, subject to subsection (2) below, any two or more operations of any kind, being—
(a) operations which affect the same property, or one of which affects some property and the other or others of which affect property which represents, whether directly or indirectly, that property, or income arising from that property, or any property representing accumulations of any such income, or
(b) any two operations of which one is effected with reference to the other, or with a view to enabling the other to be effected or facilitating its being effected, and any further operation having a like relation to any of those two, and so on.
whether those operations are effected by the same person or different persons, and whether or not they are simultaneous; and “operation” includes an omission.
(2) The granting of a lease for full consideration in money or money’s worth shall not be taken to be associated with any operation effected more than three years after the grant, and no operation effected on or after 27th March 1974 shall be taken to be associated with an operation effected before that date.
(3) Where a transfer of value is made by associated operations carried out at different times it shall be treated as made at the time of the last of them; but where any one or more of the earlier operations also constitute a transfer of value made by the same transferor, the value transferred by the earlier operations shall be treated as reducing the value transferred by all the operations taken together, except to the extent that the transfer constituted by the earlier operations but not that made by all the operations taken together is exempt under section 18 above.
(1) For the purposes of this Act a person has control of a company at any time if he then has the control of powers of voting on all questions affecting the company as a whole which if exercised would yield a majority of the votes capable of being exercised on them.
(2) For the purposes of this Act shares or securities shall be deemed to give a person control of a company if, together with any shares or securities which are related property within the meaning of section 161 above, they would be sufficient to give him control of the company (as defined in subsection (1) above).
(3) Where shares or securities are comprised in a settlement, any powers of voting which they give to the trustees of the settlement shall for the purposes of subsection (1) above be deemed to be given to the person beneficially entitled in possession to the shares or securities (except in a case where no individual is so entitled).
(4) Where a company has shares or securities of any class giving powers of voting limited to either or both of—
(a) the question of winding up the company, and
(b) any question primarily affecting shares or securities of that class,
the reference in subsection (1) above to all questions affecting the company as a whole shall have effect as a reference to all such questions except any in relation to which those powers are capable of being exercised.
For the purposes of this Act any question whether a person is connected with another shall be determined as, for the purposes of the 1992 Act, it falls to be determined under section 286 of that Act, but as if in that section “relative” included uncle, aunt, nephew and niece and “settlement”, “settlor” and “trustee” had the same meanings as in this Act.