Section 133 Shares—capital receipts.
United Kingdom
If the transferred property consists of shares and at any time before the relevant date the transferee or his spouse F1or civil partner becomes entitled to a capital payment is respect of them, then for the purposes of section 131 above the market value of the transferred property on the relevant date shall (except where apart from this section it reflects a right to the payment) be taken to be increased by an amount equal to the payment.
If at any time before the relevant date the transferee or his spouse or civil partner receives or becomes entitled to receive in respect of the transferred property a provisional allotment of shares and disposes of the rights, the amount of the consideration for the disposal shall be treated for the purposes of this section as a capital payment in respect of the transferred property.
In this section “capital payment” means any money or money’s worth which does not constitute income for the purposes of income tax.
Annotations
Textual amendments
- F1
Words in s. 133(1)(2) inserted (5.12.2005) by The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1(1), 26
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.