Section 236 Special cases.

(1)

Section 233 above shall apply in relation to—

(a)

the amount by which tax chargeable on the value transferred by a chargeable transfer made within F1seven years of the transferor’s death exceeds what it would have been had the transferor died more than seven years after the transfer, . . . F2

(b)

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

as if the chargeable transfer had been made on the death of the transferor.

F3(1A)

Section 233 above shall apply in relation to the amount (if any) by which—

(a)

the tax chargeable on the value transferred by a chargeable transfer made under Chapter III of Part III of this Act within the period of seven years ending with the settlor’s death,

exceeds

(b)

what that tax would have been had the settlor died more than seven years after the date of the transfer,

as if the chargeable transfer had been made on the death of the settlor.

(2)

Tax overpaid or underpaid in consequence of—

(a)

section 146(1) above, or section 19(1) of the M1Inheritance (Provision for Family and Dependants) Act 1975, or

(b)

the corresponding provision of the M2Inheritance (Provision for Family and Dependants) (Northern Ireland) Order 1979,

shall not carry interest for any period before the order there mentioned is made.

(3)

Tax repayable on a claim under section 146(2), . . . F4 or 150 above shall carry interest (which shall not constitute income for any tax purposes) at the F5rate applicable under section 178 of the Finance Act 1989 from the date on which the claim is made.

(4)

Tax repayable under section 147(2) above shall carry interest (which shall not constitute income for any tax purposes) at the F6rate applicable under section 178 of the Finance Act 1989 from the date on which the tax was paid; and tax charged by virtue of section 147(4) above shall carry interest at that rate F7from the end of the period mentioned in section 233(1)(b) above.

Annotations

Textual amendments

F1

Finance Act 1986 Sch. 19, para. 33(1),with effect from 18March 1986.Originally

“three years”.

F2

Repealed by Finance Act 1988 s. 148and Sch. 14, Part X,with effect from 15March 1988.

F3

Finance Act 1986 Sch. 19, para. 33(2),with effect from 18March 1986.

F4

“149”

repealed by Finance Act 1986 Sch. 23, Part X,with effect from 18March 1986.

F5

Finance Act 1989 s. 179(1)(e).Originally

“rate for the time being applicable under section 233(2)(b) above.”

F6

Finance Act 1989 s. 179(1)(e).Originally

“rate for the time being applicable under section 233(2)(a) above.”

F7

Finance Act 1989 s. 179(3).Originally

“as if section 233(1)(b) above had applied.”

Marginal citations

M1: 1975 c.63.
M2: S.I. 1979/924 (N.I.8).

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.