Paragraph 7 F1

(1)

Nothing in any double taxation relief arrangements made with the government of a territory outside the United Kingdom is to be read as preventing a person from being liable for any amount of inheritance tax by virtue of paragraph 1 or 5 in relation to any chargeable transfer if under the law of that territory—

(a)

no tax of a character similar to inheritance tax is charged on that chargeable transfer, or

(b)

a tax of a character similar to inheritance tax is charged in relation to that chargeable transfer at an effective rate of 0% (otherwise than by virtue of a relief or exemption).

(2)

In this paragraph—

“double taxation relief arrangements” means arrangements having effect under section 158(1);
“effective rate” means the rate found by expressing the tax chargeable as a percentage of the amount by reference to which it is charged.

Annotations

Textual amendments

F1: Sch. A1 inserted (with effect in accordance with Sch. 10 para. 9 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 10 para. 1 (with Sch. 10 para. 9(2))

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.