OpenLegislation

Section 104 The relief.C1C2

United Kingdom

(1)

Where the whole or part of the value transferred by a transfer of value is attributable to the value of any relevant business property, the whole or that part of the value transferred shall be treated as reduced F1by 50%. —

F2(a)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

...

F3(1A)

But so much of the value transferred as—

(a)

is attributable to the value of relevant business property that falls within section 105(1)(a), (b) or (bb),

(b)

constitutes a chargeable transfer that is not an occasion on which tax is chargeable under Chapter 3 of Part 3 (charges on certain settlements etc), and

(c)

does not exceed the amount of the 100% relief allowance available in relation to that chargeable transfer (see section 124D),

is to be treated (instead) as reduced by 100%.

(1B)

And so much of the value transferred as—

(a)

is attributable to the value of relevant business property that falls within section 105(1)(a), (b) or (bb),

(b)

constitutes a chargeable transfer that is an occasion on which tax is chargeable under Chapter 3 of Part 3, and

(c)

does not exceed the amount of the 100% trust relief allowance available in relation to that occasion (see sections 124G to 124K),

is to be treated (instead) as reduced by 100%.

(1C)

Subsections (1) to (1B) are subject to the following provisions of this Chapter.

(2)

For the purposes of this section, the value transferred by a transfer of value shall be calculated as a value on which no tax is chargeable.

Annotations

Textual amendments

F1

Words in s. 104(1) inserted (with effect in accordance with Sch. 12 para. 17 of the amending Act) by Finance Act 2026 (c. 11), Sch. 12 paras. 2(2)(a), 17

F2

S. 104(1)(a)(b) and words omitted (with effect in accordance with Sch. 12 para. 17 of the amending Act) by virtue of Finance Act 2026 (c. 11), Sch. 12 paras. 2(2)(b), 17

F3

S. 104(1A)-(1C) inserted (with effect in accordance with Sch. 12 para. 17 of the amending Act) by Finance Act 2026 (c. 11), Sch. 12 paras. 2(3), 17

Modifications

C1

S. 104 excluded (1.11.2004 with effect as mentioned in reg. 1 of the amending S.I.) by The Inheritance Tax (Delivery of Accounts) (Excepted Estates) Regulations 2004 (S.I. 2004/2543), reg. 4(7)

C2

Ss. 104, 116 excluded (6.4.2008) by The Inheritance Tax (Delivery of Accounts) (Excepted Transfers and Excepted Terminations) Regulations 2008 (S.I. 2008/605), reg. 4(4)

Ss. 104, 116 excluded (6.4.2008) by The Inheritance Tax (Delivery of Accounts) (Excepted Transfers and Excepted Terminations) Regulations 2008 (S.I. 2008/605), reg. 5(5)

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 Chapter I

Modifications

C1

Pt. 5 Ch. 1 modified (16.7.1992) by Finance (No.2) Act 1992 (c. 48), s. 73, Sch. 14, para. 9(4).

C2

Pt. 5 Ch. 1 modified (temp.) (retrospective to 30.10.2024) by Finance Act 2026 (c. 11), Sch. 12 para. 15