Schedule 2 | PROVISIONS APPLYING ON REDUCTION OF TAX

Interpretation

(1)In this Schedule—references to a reduction are to a reduction of tax by the substitution of a new Table in Schedule 1 to this Act, andreferences to something happening before or after a reduction are to its happening before or, as the case may be, on or after the date on which the Table giving effect to the reduction comes into force.^F1F2F3

Death within seven years of potentially exempt transfer^F4

(1A)Where a person who has made a potentially exempt transfer before a reduction dies after that reduction (or after that and one or more subsequent reductions) and within the period of seven years beginning with the date of the transfer, tax shall be chargeable by reason of the transfer proving to be a chargeable transfer only if, and to the extent that, it would have been so chargeable if the Table in Schedule 1 as substituted by that reduction (or by the most recent of those reductions) had applied to that transfer.^F4

Death within seven years of chargeable transfer^F5

(2)Where a person who has made a chargeable transfer other than a potentially exempt transfer) before a reduction dies after that reduction (or after that and one or more subsequent reductions) and within seven years of the transfer, additional tax shall be chargeable by reason of his death only if, and to the extent that, it would have been so chargeable if . . . the Table in Schedule 1 as substituted by that reduction (or by the most recent of those reductions) had applied to that transfer.^F6F5F7F8

Settlement without interest in possession

(3)Where tax is chargeable under section 65 of this Act on any occasion after a reduction and the rate at which it is charged is determined under section 69 by reference to the rate that was (or would have been) charged under section 64 on an occasion before that reduction (or before that and one or more other reductions), the rate charged on the later occasion shall be determined as if . . . the Table in Schedule 1 as substituted by that reduction (or by the most recent of those reductions) had been in force on the earlier occasion.^F9F8

Disposal of trees etc. following exemption on death

(4)Where the value of any trees or underwood has been left out of account under Chapter III of Part V of this Act in determining the value transferred by the chargeable transfer made on a death before a reduction and tax is chargeable under section 126 on a disposal of the trees or underwood after that reduction (or after that and one or more subsequent reductions) the rate or rates mentioned in section 128 shall be determined as if . . . the Tables in Schedule 1 as substituted by that reduction (or by the most recent of those reductions) had applied to that transfer.^F10F8

Conditionally exempt transfers

(5)Where tax is chargeable under section 32 or 32A of this Act by reason of a chargeable event occurring after a reduction and the rate or rates at which it is charged fall to be determined under the provisions of section 33(1)(b)(ii) by reference to a death which occurred before that reduction (or before that and one or more other reductions) those provisions shall apply as if the Table in Schedule 1 as substituted by that reduction (or by the most recent of those reductions) had been in force at the time of the death.^F11F8

Maintenance funds for historic buildings

(6)Where tax is chargeable under paragraph 8 of Schedule 4 to this Act on any occasion after a reduction and the rate at which it is charged falls to be determined under paragraph 14 of that Schedule by reference to a death which occurred before that reduction (or before that and one or more other reductions) paragraph 14 shall apply as if the Table in Schedule 1 as substituted by that reduction (or by the most recent of those reductions) had been in force at the time of the death.^F8

(7)Repealed^F12

Relevant dependant with pension fund inherited from member over 75^F13

(6A)Where tax is chargeable under section 151B of this Act on an occasion after a reduction and the rate or rates at which it is charged fall to be determined by reference to the death of a person which occurred before that reduction (or before that and one or more other reductions) that section applies as if the Table in Schedule 1 as substituted by that reduction (or by the most recent of those reductions) had been in force at the time of that person's death.^F13F14