# The Inheritance Tax (Indexation) Order 1987

S.I. 1987/435 · made 17 March 1987

By this Order, made under the provisions of section 8 of the Inheritance Tax Act 1984 (formerly the Capital Transfer Tax Act 1984) a new Table of rate bands and rates is substituted in Schedule 1 to that Act for the Table which was substituted by the Finance Act 1986. The figures in the first and second columns of the new Table are the amounts specified in the Table in Schedule 1 to the Inheritance Tax Act 1984 (as so substituted) increased by the amount of the percentage increase (3.72%) in the retail prices index for December 1986 over that for December 1985. The figures are rounded upward to the nearest £1,000 in accordance with section 8(2). The “retail prices index” is defined in section 8(3) as “the general index of retail prices (for all items) published by the Department of Employment”. The retail prices index for December 1985 is 378.9 and for December 1986 393.0 (based on January 1974 as 100). (Table 6.4 of the Department of Employment Gazette, February 1987.)

Made under: Inheritance Tax Act 1984

PDFs: Printed copy https://openlegislation.uk/inheritance-tax-indexation-order-1987/pdf/uksi_19870435_en.pdf

## Introductory text

INHERITANCE TAX
Made 17th March 1987
The Treasury, in pursuance of section 8(4) of the Inheritance Tax Act 1984, hereby make the following Order:

## 1 

This Order may be cited as the Inheritance Tax (Indexation) Order 1987.

## 2 

The amounts which, unless Parliament otherwise determines, shall be treated by virtue of section 8 of the Inheritance Tax Act 1984 as specified in the Table in Schedule 1 to that Act in relation to chargeable transfers on or after 6th April 1987 are as follows—
Table of Rates of Tax
Portion of value
Rate of Tax
Lower Limit
Upper Limit
Per cent.
£
£
0
74,000
Nil
74,000
99,000
30
99,000
134,000
35
134,000
171,000
40
171,000
214,000
45
214,000
267,000
50
267,000
329,000
55
329,000
—
60

## Signature

Tim Sainsbury
Michael Neubert
Two of the Lords Commissioners of Her Majesty`s Treasury
17th March 1987

## Explanatory note

(This note is not part of the Order)
By this Order, made under the provisions of section 8 of the Inheritance Tax Act 1984 (formerly the Capital Transfer Tax Act 1984) a new Table of rate bands and rates is substituted in Schedule 1 to that Act for the Table which was substituted by the Finance Act 1986. The figures in the first and second columns of the new Table are the amounts specified in the Table in Schedule 1 to the Inheritance Tax Act 1984 (as so substituted) increased by the amount of the percentage increase (3.72%) in the retail prices index for December 1986 over that for December 1985. The figures are rounded upward to the nearest £1,000 in accordance with section 8(2). The “retail prices index” is defined in section 8(3) as “the general index of retail prices (for all items) published by the Department of Employment”. The retail prices index for December 1985 is 378.9 and for December 1986 393.0 (based on January 1974 as 100). (Table 6.4 of the Department of Employment Gazette, February 1987.)
The new Table will apply in relation to chargeable transfers on or after 6th April 1987 unless Parliament otherwise determines.

---
Source: https://www.legislation.gov.uk/uksi/1987/435 (the official version)
Page: https://openlegislation.uk/inheritance-tax-indexation-order-1987
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.