Paragraph 2

(1)

The conditions referred to in paragraph 1 above are—

(a)

that the Treasury are satisfied—

(i)

that the trusts on which the property is held comply with the requirements mentioned in paragraph 3 below, and

(ii)

that the property is of a character and amount appropriate for the purposes of those trusts; and

(b)

that the trustees—

(i)

are approved by the Treasury,

(ii)

include a trust corporation, a solicitor, an accountant

or a member of such other professional body as the Treasury may allow in the case of the property concerned, and

(iii)

are, at the time the direction is given, resident in the United Kingdom.

(2)

For the purposes of this paragraph trustees shall be regarded as resident in the United Kingdom if—

(a)

the general administration of the trusts is ordinarily carried on in the United Kingdom, and

(b)

the trustees or a majority of them (and, where there is more than one class of trustees, a majority of each class) are resident in the United Kingdom;

and where a trustee is a corporation, the question whether the trustee is resident in the United Kingdom shall, for the purposes of paragraph (b) above, be determined as for the purposes of corporation tax.

(3)

In this paragraph—

“accountant” means a member of an incorporated society of accountants;
“trust corporation” means a person that is a trust corporation for the purposes of the M1Law of Property Act 1925 or for the purposes of Article 9 of the M2Administration of Estates (Northern Ireland) Order 1979.

Annotations

Marginal citations

M1: 1925 c.20.
M2: S.I. 1979/1575 (N.I. 14).

Notes on the whole Act

Textual amendments

F1: By Finance Act 1986 s. 100(1), on and after 25 July 1986 the Capital Transfer Tax Act 1984 may be cited as the Inheritance Tax Act 1984.

Notes on Schedule 4

Modifications

C1: By Finance Act 1985 s. 95,the functions of the Treasury were transferred to the Commissioners of Inland Revenue (“the Board”).