Commentary

I11.501 IHT payment facilities—introduction

IHT, trusts and estates

I11.501 IHT payment facilities—introduction

Division I11.5     Facilities for payment

For updates affecting this Division please see Part I0 Updates

IHT payment facilities

I11.501 IHT payment facilities—introduction

Where IHT is payable in respect of certain categories of qualifying property the person liable may elect to pay in ten equal yearly instalments if1:

  1.  

    •     the chargeable transfer was made on death

  2.  

    •     the IHT is borne by the person benefiting from the transfer, or

  3.  

    •     the chargeable property is settled property remaining in the settlement after the chargeable event.

The right to pay by instalments relates to the IHT 'attributable' to qualifying property2. Where the value transferred by a chargeable transfer (usually a transfer on death) is determined by reference to the values of more than one property, the IHT on the value transferred is attributed to the respective values in the proportions which they bear to their aggregate, subject to IHTA 1984, s 54B(3)3, and to any provision reducing the amount of tax attributable to the value of any particular property4 (for example business or agricultural relief, see Divisions I7.1 and I7.3).

Availability of instalment facility

The instalment facility is only available in relation to tax (or additional tax) due on qualifying property5:

  1.  

    •     owned by the transferee continuously from the transfer until the transferor's death or his own earlier death

  2.  

    •     to which

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