# The Inheritance Tax (Indexation) Order 1994, Note: Explanatory note


(This note is not part of the Order)
This Order, made under section 8 of the Inheritance Tax Act 1984 (formerly the Capital Transfer Tax Act 1984) (“section 8”) substitutes a new Table of rate bands and rates in Schedule 1 to that Act for the Table which was substituted by section 72(1) of the Finance (No. 2) Act 1992 and applied, by section 196 of the Finance Act 1993 and section 246 of the Finance Act 1994, to chargeable transfers made in the years beginning 6th April 1993 and 6th April 1994 respectively.
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 in the retail prices index for September 1994 over that for September 1993, and rounded up to the nearest £1,000 in accordance with subsections (2) and (3) of section 8 (as amended by paragraph 3 of Schedule 19 to the Finance Act 1986 and section 197 of the Finance Act 1993). The “retail prices index” is defined in subsection (3) of section 8, as amended by paragraph 5 of Schedule 2 to the Transfer of Functions (Economic Statistics) Order 1989 (S.I. 1989/992), as “the general index of retail prices (for all items) published by the Central Statistical Office of the Chancellor of the Exchequer”. The retail prices index for September 1993 is 141.9 and for September 1994 is 145.0 (based on January 1987 as 100) (see Table 6.4 on page S56 of the November 1994 number of the Employment Gazette, the official journal of the Department of Employment).
The new Table will apply in relation to chargeable transfers on or after 6th April 1995 unless Parliament otherwise determines.

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Source: https://www.legislation.gov.uk/uksi/1994/3011/note (the official version)
Page: https://openlegislation.uk/inheritance-tax-indexation-order-1994/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.