{
  "url": "https://openlegislation.uk/inheritance-tax-double-charges-relief-regulations-1987/note",
  "json_url": "https://openlegislation.uk/inheritance-tax-double-charges-relief-regulations-1987/note.json",
  "legislation": "uksi/1987/1130",
  "legislation_title": "The Inheritance Tax (Double Charges Relief) Regulations 1987",
  "legislation_url": "https://openlegislation.uk/inheritance-tax-double-charges-relief-regulations-1987",
  "path": "note",
  "kind": "note",
  "number": null,
  "heading": "Explanatory note",
  "text": "(This note is not part of the Regulations)\nThe Finance Act 1986 by the provisions of section 104 empowered the Board of Inland Revenue to make provision by regulations for avoiding in certain circumstances double charges to inheritance tax in respect of transfers of value and other events occuring on or after 18 March 1986.\nThese Regulations provide for the avoidance of double charges arising in specified circumstances.\nRegulation 1 provides the title and commencement date.\nRegulation 2 contains definitions.\nRegulation 3 describes the scope of the Regulations.\nRegulation 4 provides for the avoidance of a double charge where property given by a potentially exempt transfer (PET) is subsequently returned (otherwise than for full consideration) by the donee to the transferor, and as a result of the transferor’s death both that property and the PET become chargeable to tax. If charging the property as part of the death estate produces a higher amount of tax than would be payable if the charge on the PET was taken instead, the value transferred by the original transfer (the PET) is reduced by reference to the amount of the value of that property which is included in the chargeable transfer on the death. Conversely the PET is charged if that produces the higher amount of tax, with a corresponding reduction in the value of that property which is included in the chargeable transfer on the death. To avoid the value of the same property entering twice into the tax calculations this reduction applies for all purposes of the tax.\nRegulation 5 provides for the avoidance of a double charge where there is a transfer of value by way of gift of property which is or subsequently becomes a chargeable transfer, and the property is (by virtue of the provisions relating to gifts with reservation) subject to a further transfer which is chargeable as a result of the transferor’s death. As under regulation 4, whichever transfer produces the higher amount of tax as a result of the death remains chargeable and the value of the other transfer is reduced by reference to the value of the transfer which produced that amount. However this reduction in value does not apply for the purposes of any discretionary trust charges arising before the transferor’s death if the transfer by way of gift was chargeable to tax when it was made. Further, provision is made for credit to be given on account of any tax already paid on the transfer by way of gift against so much of the tax payable on the other transfer as relates to the value of the property in question.\nRegulation 6 provides for the avoidance of a double charge where a transfer of value is or subsequently becomes a chargeable transfer, and at the transferor’s death his estate owes to the transferee a debt which (under the rules relating to such liabilities) falls to be abated or disallowed in determining the value of the estate chargeable on the death. Two separate calculations of tax payable as a result of the death are made. In the first, the amount of the transfer of value is reduced by the amount of the debt which is disallowed or abated, and in the second, the amount of the transfer of value and of the debt are both taken into account. The higher amount of tax is payable, but is given either by reducing the value of the transfer of value or by allowing the debt and charging the transfer of value in full. As under regulation 5, the reduction in value does not apply for the purposes of any charges on discretionary trusts arising before the death if the transfer of value was a chargeable transfer when it was made. Credit is allowed for some or all of the tax already paid on that transfer against the tax payable on the transferor’s estate at death.\nRegulation 7 provides for the avoidance of a double charge where property given by a transfer of value which is chargeable when made, is returned (otherwise than for full consideration) by the donee to the transferor, and that property is also chargeable as part of the transferor’s estate on his death. It provides the same relief as is provided under regulation 4 in the case where the transfer of value was a PET when it was made, but credit is available for tax already paid. The reduction in value does not apply for the purposes of discretionary trust charges arising before the death.\nRegulation 8 provides a rule to determine which of two equal amounts under regulation 4(4), 5(3), 6(3) or 7(4) is to be treated as the higher amount for the purposes of each of those regulations.\nRegulation 9 introduces the Schedule which provides examples of the operation of these Regulations.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/1987/1130/note",
    "retrieved_at": "2026-10-29T16:24:37.545550+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}