Paragraph 6 Indexation of relief allowances

After section 124K (as inserted by paragraph 5) insert—

“Indexation of allowance amounts

124L

(1)

If the consumer prices index for the month of September in any year is higher than it was for the previous September, then each relief allowance amount applies to chargeable transfers made on or after 6th April in the following year as if—

(a)

increased by the percentage that is the same as the percentage by which the consumer prices index is higher than it was for the previous September, and

(b)

rounded up to the nearest amount which is a multiple of £1000 (where it would not otherwise be).

(2)

The Treasury must before 6th April 2031 and each subsequent 6th April make an order by statutory instrument amending each relief allowance amount to achieve the result in subsection (1).

(3)

In this section—

• “consumer prices index” means the all items consumer prices index published by the Statistics Board;

• “relief allowance amount” means an amount (for the time being) specified in any of the following provisions—

  1. (a)

     section 124D(2)(a) (100% relief allowance);

  2. (b)

     subsection (4)(a) of section 124H (100% trust relief allowance cap);

  3. (c)

     section 124I(1) (100% trust relief allowance: qualifying pre-commencement settlements);

  4. (d)

     section 124J(2)(a) (100% trust relief allowance: special trusts);

  5. (e)

     section 124K(4) (100% trust relief allowance: age 18-to-25 trusts).”

The amendment made by sub-paragraph (1) comes into force on 6 April 2030 (and accordingly no relief allowance amount is to be increased by virtue of it before 6 April 2031).