Paragraph 57
United Kingdom
The F1percentage of the assets of the fund or scheme which at any time is the protected percentage of those assets does not at that time constitute relevant property for the purposes of Chapter 3 of Part 3 of the Inheritance Tax Act 1984 (settlements without interest in possession).
“The protected F2percentage” of the assets of the fund or scheme at a time is—
where—
V is the market value of the assets of the fund or scheme at that time, and
ACV is the adjusted commencement value, that is an amount equal to the market value of the assets of the fund or scheme on 5th April 2006, but subject to the adjustments provided by sub-paragraph (3).
The adjustments are—
an increase by the percentage by which the retail prices index for the month of September immediately preceding the time in question is greater than that for April 2006, and
a reduction by the amount of any relevant payments made under the fund or scheme on or after 6th April 2006 and before that time.
“Relevant payments”are payments other than—
payments of costs or expenses, or
payments which are (or will be) income of any person for any of the purposes of income tax.
Annotations
Textual amendments
- F1
Word in Sch. 36 para. 57(1) substituted (6.4.2006) by Finance Act 2005 (c. 7), Sch. 10 paras. 58(2), 64(1)
- F2
Word in Sch. 36 para. 57(2) substituted (6.4.2006) by Finance Act 2005 (c. 7), Sch. 10 paras. 58(2), 64(1)
Notes on Schedule 36
Modifications
- C1
Sch. 36 applied (1.6.2018) by The Local Government Pension Scheme (Scotland) Regulations 2018 (S.S.I. 2018/141), regs. 1(1), 48(2)
- C2
Sch. 36 modified by The Taxation of Pension Schemes (Transitional Provisions) Order 2006 (S.I. 2006/572), art. 23D (as inserted (1.6.2009) by S.I. 2009/1172, arts. 1, 3; and as amended (for the tax year 2024-25 and subsequent tax years) by S.I. 2024/1012, regs. 1(2)(3), 25(15) and by S.I. 2026/698, regs. 1(2)(6), 14(3))