Section 206A Partial repayment of section 206 charge where IHT paid by recipient of benefitF1

This section applies where—

Section 206 applies in relation to the lump sum death benefit as if the amount of the benefit that was paid to the non-qualifying person were the amount in fact paid, reduced by the amount of inheritance tax paid as mentioned in subsection (1)(c).

If and to the extent that the amount of the lump sum death benefits charge paid in respect of the lump sum death benefit exceeds the amount of the liability (as recalculated as a result of subsection (2)), the excess must be repaid to the non-qualifying person (and may not be repaid to the scheme administrator).

An application under this section is of no effect unless it complies with such requirements as to timing, form and content as may be prescribed by the Commissioners.

For the purposes of subsection (1)(c) the deceased’s personal representatives “pass on the burden” of a payment of inheritance tax to the non-qualifying person if—

In this section—

• “the Commissioners” means the Commissioners for His Majesty’s Revenue and Customs;

• “inheritance tax” includes interest on inheritance tax;

• “non-qualifying person” has the same meaning as in section 206.