Section 125 The relief.

United Kingdom

(1)

This section applies where—

(a)

part of the value of a person’s estate immediately before his death is attributable to the value of land F1in the United Kingdom F2... on which trees or underwood are growing but which is not agricultural property within the meaning of Chapter II of this Part of this Act, and

(b)

either he was beneficially entitled to the land throughout the five years immediately preceding his death, or he became beneficially entitled to it otherwise than for a consideration in money or money’s worth.

F3(1A)

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

(2)

Where this section applies and the person liable for the whole or part of the tax so elects—

(a)

the value of the trees or underwood shall be left out of account in determining the value transferred on the death, but

(b)

tax shall be charged in the circumstances mentioned in section 126 below.

(3)

An election under this section must be made by notice in writing to the Board within two years of the death or such longer time as the Board may allow.

Annotations

Textual amendments

F1: Words in s. 125(1)(a) inserted (with effect in accordance with s. 11(7) of the amending Act) by Finance (No. 2) Act 2024 (c. 12), s. 11(5)(a)
F2: Words in s. 125(1)(a) omitted (with effect as mentioned in s. 122(7)-(9) of the amending Act) by virtue of Finance Act 2009 (c. 10), s. 122(5)
F3: S. 125(1A) omitted (with effect in accordance with s. 11(7) of the amending Act) by virtue of Finance (No. 2) Act 2024 (c. 12), s. 11(5)(b)

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.