Section 8J Meaning of “inherited”F1

United Kingdom

(1)

This section explains for the purposes of sections 8E F2, 8F, 8FA, 8FB and 8M whether a person (“B”) inherits, from a person who has died (“D”), property which forms part of D's estate immediately before D's death.

(2)

B inherits the property if there is a disposition of it (whether effected by will, under the law relating to intestacy or otherwise) to B.

(3)

Subsection (2) does not apply if—

(a)

the property becomes comprised in a settlement on D's death, or

(b)

immediately before D's death, the property was settled property in which D was beneficially entitled to an interest in possession.

(4)

Where the property becomes comprised in a settlement on D's death, B inherits the property if—

(a)

B becomes beneficially entitled on D's death to an interest in possession in the property, and that interest in possession is an immediate post-death interest or a disabled person's interest, or

(b)

the property becomes, on D's death, settled property—

(i)

to which section 71A or 71D applies, and

(ii)

held on trusts for the benefit of B.

(5)

Where, immediately before D's death, the property was settled property in which D was beneficially entitled to an interest in possession, B inherits the property if B becomes beneficially entitled to it on D's death.

(6)

Where the property forms part of D's estate immediately before D's death as a result of the operation of section 102(3) of the Finance Act 1986 (gifts with reservation) in relation to a disposal of the property made by D by way of F3gift—

(a)

subsections (2) to (5) do not apply, and

(b)

B inherits the property if the property originally comprised in the gift became comprised in B’s estate on the making of the disposal.

Annotations

Textual amendments

F1: Ss. 8D-8M inserted (18.11.2015) by Finance (No. 2) Act 2015 (c. 33), s. 9(4)
F2: Words in s. 8J(1) substituted (15.9.2016) by Finance Act 2016 (c. 24), Sch. 15 para. 9
F3: Words in s. 8J(6) substituted (with application in accordance with s. 66(6) of the amending Act) by Finance Act 2019 (c. 1), s. 66(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.