IHTM04112 | Heritage property: when a charge to tax arises
From HM Revenue & Customs · Inheritance Tax Manual
Where there has been a conditionally exempt transfer, tax may be subsequently payable on the first occurrence after the transfer (or if the transfer was a potentially exempt transfer, () on the first occurrence after the transferor’s death) of a chargeable event, such as the sale of the asset.
The chargeable events are contained in
in connection with properties that are not associated () with each other, and
where the event concerns properties that are associated () with each other.
Because of the definition of a conditionally exempt transfer, the charging provisions of and only apply to chargeable events in relation to property conditionally exempted on a transfer on or after 7 April 1976.