# The Inheritance Tax (Indexation) Order 1988

S.I. 1988/505 · made 15 March 1988

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 1987. 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 (3.7%) in the retail prices index for December 1987 over that for December 1986. 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 1986 is 393.0 (based on January 1974 as 100) and for December 1987 is 103.3 (based on January 1987 as 100). (Table 6.4 on pages S56 and S57 of the February 1988 number of the Employment Gazette, the official journal of the Department of Employment. The retail prices index for January 1987 is 394.5 (based on January 1974 as 100) and the percentage increase is calculated thus:

Made under: Inheritance Tax Act 1984

PDFs: Printed copy https://openlegislation.uk/inheritance-tax-indexation-order-1988/pdf/uksi_19880505_en.pdf

## Introductory text

INHERITANCE TAX
Made 15th March 1988
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 1988.

## 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(b) in relation to chargeable transfers on or after 6th April 1988 are as follows—
TABLE OF RATES OF TAX
Portion of value
Rate of tax
Lower Limit
Upper Limit
Per cent
£
£
0
94,000
Nil
94,000
146,000
30
146,000
229,000
40
229,000
343,000
50
343,000
—
60

## Signature

Tony Durant
David Lightbown
Two of the Lords Commissioners of Her Majesty’s Treasury
15th March 1988

## 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 1987. 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 (3.7%) in the retail prices index for December 1987 over that for December 1986. 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 1986 is 393.0 (based on January 1974 as 100) and for December 1987 is 103.3 (based on January 1987 as 100). (Table 6.4 on pages S56 and S57 of the February 1988 number of the Employment Gazette, the official journal of the Department of Employment. The retail prices index for January 1987 is 394.5 (based on January 1974 as 100) and the percentage increase is calculated thus:
(103.3×394.5393)-100 .)
The new Table will apply in relation to chargeable transfers on or after 6th April 1988 unless Parliament otherwise determines.

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Source: https://www.legislation.gov.uk/uksi/1988/505 (the official version)
Page: https://openlegislation.uk/inheritance-tax-indexation-order-1988
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.