# The Inheritance Tax (Indexation) Order 1996

S.I. 1996/2956 · made 26 November 1996

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 183(1) of the Finance Act 1996 in relation to chargeable transfers made in the year beginning 6th April 1996.

Made under: Inheritance Tax Act 1984

## Introductory text

INHERITANCE TAX
Made 26th November 1996
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 1996.

## 2 

The amounts which, unless Parliament otherwise determines, will 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 1997 are as follows —
TABLES OF RATES OF TAX
Portion of value
Lower Limit
Upper Limit
Rate of tax
Per cent.
£
£
0
205,000
NIL
205,000
—
40

## Signature

Bowen Wells
Michael Bates
Two of the Lords Commissioners of Her Majesty’s Treasury
26th November 1996

## 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 183(1) of the Finance Act 1996 in relation to chargeable transfers made in the year beginning 6th April 1996.
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 1996 over that for September 1995, 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 Central Statistical Office is now known as the Office for National Statistics.) The retail prices index for September 1995 is 150.6 and for September 1996 is 153.8 (based on January 1987 as 100) (see Table 3.1 on page T26 of the October 1996 issue (No. 516) of Economic Trends, a publication of the Government Statistical Service).
The new Table will apply in relation to chargeable transfers on or after 6th April 1997 unless Parliament otherwise determines.

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Source: https://www.legislation.gov.uk/uksi/1996/2956 (the official version)
Page: https://openlegislation.uk/inheritance-tax-indexation-order-1996
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.