Schedule 4 | Inheritance Tax: Transfer Of Nil-Rate Band Etc | Finance Act 2008 C9

SCHEDULE 4 Inheritance Tax: Transfer of Nil-rate Band etc

Finance Act 2008 (2008 c 9) | Legislation

SCHEDULE 4 Inheritance Tax: Transfer of Nil-rate Band etc

Section 10 Amendments of IHTA 1984

IHTA 1984 is amended as follows.

After section 8 insert—

“8A Transfer of unused nil-rate band between spouses and civil partners

(1) This section applies �ɳ��—

(a) immediately before the death of a person (a “deceased person”), the deceased person had a spouse or civil partner (“the survivor”), and

(b) the deceased person had unused nil-rate band on death.

(2) A person has unused nil-rate band on death if—

M > VT

�ɳ��—

M is the maximum amount that could be transferred by a chargeable transfer made (under section 4 above) on the person's death if it were to be wholly chargeable to tax at the rate of nil per cent (assuming, if necessary, that the value of the person's estate were sufficient but otherwise having regard to the circumstances of the person); and

VT is the value actually transferred by the chargeable transfer so made (or nil if no chargeable transfer is so made).

(3) Where a claim is made under this section, the nil-rate band maximum at the time of the survivor's death is