Commentary

I1.201 Introduction to estate duty

IHT, trusts and estates

I1.201 Introduction to estate duty

Division I1.2     Estate duty

For updates affecting this Division please see Part I0 Updates

Estate duty

I1.201 Introduction to estate duty

Estate duty1 was introduced by FA 1894 in respect of deaths occurring after 1 August 18942. It replaced probate duty, account duty and the temporary estate duty of 1889. The tax applied to UK and non-UK sited real and personal property — in Scotland heritable and movable property — comprised in an individual's estate at the time of his death. Its rules, such as those on territorial extent and application, owed much to succession duty. Further, estate duty applied to settled property. It was thus as wide as both succession and legacy duties but it was of a mutation, not an acquisition character. Legacy and succession duties were not abolished immediately but were to continue until 1949. From its introduction, estate duty applied to all deaths occurring on or before 12 March 19753.

The provisions of FA 1894 were substantially amended from time to time, but the law was never consolidated. A committee was set up to consider consolidation and drafted an amending Bill and a consolidated Bill but these were

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