Dispositions that are not transfers of value

By Tolley
Trust_tax_img7

The following Trusts and Inheritance Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Dispositions that are not transfers of value
  • Dispositions not intended to confer gratuitous benefit
  • Dispositions for family maintenance
  • Dispositions allowable for income tax or corporation tax
  • Dispositions conferring benefits under pension schemes
  • Dispositions by close companies for the benefit of employees
  • Waiver of remuneration
  • Waiver of dividends
  • Grant of tenancies of agricultural property
  • Changes in the distribution of a person’s estate

The legislation specifically excludes certain types of arrangements from the scope of inheritance tax even though the effect is a diminution in the value of the transferor’s estate.

The dispositions that are not transfers of value are:

Dispositions not intended to confer gratuitous benefitIHTA 1984, s 10
Dispositions for family maintenanceIHTA 1984, s 11
Dispositions allowable for income tax or conferring benefits under pension schemesIHTA 1984, s 12
Dispositions by close companies for the benefit of employeesIHTA 1984, s 13
Waiver of remunerationIHTA 1984, s 14
Waiver of dividendsIHTA 1984, s 15
Grant of tenancies of agricultural property

More on The charge to IHT: