Section 153ZA Qualifying paymentsF1

United Kingdom

(1)

This section applies where a qualifying payment has at any time been received by a person (“P”), or by the personal representatives of P.

(2)

The tax chargeable on the value transferred by the transfer made on P's death (the “value transferred”) is to be reduced by an amount equal to—

(a)

the relevant percentage of the amount of the qualifying payment, or

(b)

if lower, the amount of tax that would, apart from this section, be chargeable on the value transferred.

(3)

In subsection (2) “relevant percentage” means the percentage specified in the last row of the third column of the Table in Schedule 1.

(4)

For the purposes of this section, a “qualifying payment” is a payment that meets Condition A, B or C.

(5)

Condition A is that the payment—

(a)

is of a kind specified in Part 1 of Schedule 5A, and

(b)

is made to a person, or the personal representatives of a person, who was—

(i)

a victim of National-Socialist persecution, or

(ii)

the spouse or civil partner of a person within sub-paragraph (i).

(6)

Condition B is that the payment is of a kind listed in Part 2 of Schedule 5A.

(7)

Condition C is that the payment—

(a)

is of a kind specified in regulations made by the Treasury, and

(b)

is made to a person, or the personal representatives of a person, who was—

(i)

held as a prisoner of war, or a civilian internee, during the Second World War, or

(ii)

the spouse or civil partner of a person within sub-paragraph (i).

(8)

The Treasury may by regulations add a payment of a specified kind to the list in Part 1 of Schedule 5A.

(F28A)

Regulations under this section may have effect in relation to deaths occurring before the regulations are made.

(9)

Regulations under this section are to be made by statutory instrument.

(10)

A statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of the House of Commons.

Annotations

Textual amendments

F1: S. 153ZA and cross-heading inserted (with effect in accordance with s. 95(3) of the amending Act) by Finance Act 2016 (c. 24), s. 95(1)
F2: S. 153ZA(8A) inserted (22.7.2020) by Finance Act 2020 (c. 14), s. 75(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.