IHTM30371 | Special rules: Inheritance (Provision for Family & Dependants) Act 1975

Under this Act (IHTM35231) and the corresponding provisions for Northern Ireland, the courts have power in certain circumstances to

• change the devolution of a person’s death estate and

• require beneficiaries of lifetime gifts to contribute to the donor’s death estate for this purpose.

There are two special rules about interest:

• where there is a change in the devolution of a death estate within IHTA84/S146 (1), any tax payable or repayable as a result of that change does not carry interest from the date earlier than the date of the court order making the change - IHTA84/S236 (2)

• if the beneficiary of a lifetime gift has to make a contribution any consequential repayment of tax under IHTA84/S146 (2) on the lifetime transfer carries interest (free of income tax) from the date on which the claim for repayment was made - IHTA84/S236 (3).