Regulation 3 Amendment of the principal Regulations

in sub-paragraph (c)(i), for “£150,000” substitute “£250,000”;

in sub-paragraph (d), for “£150,000” substitute “£250,000”;

for sub-paragraph (e) substitute—

“(e)

the gross value of the estate for inheritance tax did not exceed the IHT threshold.”.

for sub-paragraph (c)(i) substitute—

“(i)

not more than £1,000,000 represented value attributable to property which, immediately before that person’s death, was settled property, and of that settled property, not more than £250,000 represented value attributable to property other than property transferred on that person’s death by a spouse, civil partner or charity transfer; and”;

in sub-paragraph (d), for “£150,000” substitute “£250,000”;

for sub-paragraph (e) substitute—

“(e)

the gross value of the estate for inheritance tax did not exceed £3,000,000;”;

for sub-paragraph (f) substitute—

“(f)

the net qualifying value of the estate does not exceed the IHT threshold.”.

in sub-paragraph (ba) omit “and”;

after sub-paragraph (ba) insert—

“(bb)

that person was not beneficially entitled to any property to which paragraph 2 or 3 of Part 1 or paragraph 5 of Part 2 of Schedule A1 to the 1984 Act^f1 applies;

(bc)

subject to paragraph (7A), that person died without having made any chargeable transfers during the period of seven years ending with his death; and”.

for “(2) and (3)” substitute “(2), (3) and (4)”;

before “specified transfers” insert—

““gross value of the estate for inheritance tax” means the aggregate of—

(a)

the gross value of a person’s estate,

(b)

subject to paragraph (7), the value transferred by any specified transfers made by that person, and

(c)

the value transferred by any specified exempt transfers made by that person;

“net value of the estate for inheritance tax” means the aggregate of—

GV – L

where—

GV is the gross value of the estate for inheritance tax, and

L, subject to paragraph (7B), is the total liabilities of the estate;

“net qualifying value of the estate” means the aggregate of—

NV – EVT

where—

NV is net value of the estate for inheritance tax, and

EVT, subject to paragraph (4), is the total value transferred on that person’s death by a spouse, civil partner or charity transfer;”.