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Legislation
Inheritance Tax Act 1984

Chapter 2A 100% Relief allowance and 100% trust relief allowance

  • Section 124D 100% relief allowance
  • Section 124E Transfer of unused 100% relief allowance
  • Section 124F Claims under section 124E
  • Section 124G 100% trust relief allowance (relevant property)
  • Section 124H Trust maximum allowance
  • Section 124I Trust maximum allowance (qualifying pre-commencement settlements)
  • Section 124J 100% trust relief allowance (special trusts)
  • Section 124K 100% trust relief allowance (age 18-to-25 trusts)
  1. Chapter 2A
  2. Transfer of unused 100% relief allowance

Section 124E | Transfer of unused 100% relief allowance F1

From legislation.gov.uk

(1)This section applies where—

(a)immediately before the death of a person (a “deceased person”), the deceased person had a spouse or civil partner (“the survivor”), and

(b)an amount of the 100% relief allowance of the deceased person is unused on death.

(2)A person has an amount of unused 100% relief allowance on death if the total 100% relieved amount is less than the deceased person’s final allowance amount.

(3)Accordingly, the “unused 100% relief allowance” in relation to the person is the difference between those amounts.

(4)In this section—

(a)the “total 100% relieved amount” is the total amount by which values transferred by chargeable transfers made by the deceased person in the period of seven years ending with the day on which the deceased person died were treated as reduced as a result of section 104(1A) or 116(1A), and

(b)the “final allowance amount” in relation to a person means the amount specified in section 124D(2)(a) that has effect on the day on which the person dies.

(5)Where a claim is made under this section, the survivor’s final allowance amount, for the purposes of the charge to tax on the death of the survivor, is increased by the lesser of the amount of the survivor’s final allowance amount and—

(a)the amount given by multiplying the survivor’s final allowance amount by the unused percentage of the deceased person, or

(b)where the survivor is the survivor in relation to more than one deceased person, the amount given by multiplying the survivor’s final allowance amount by the sum of the unused percentages of those deceased persons.

(6)The unused percentage of the deceased person means the percentage given by dividing—

(a)the unused 100% relief allowance in relation to the deceased person, by

(b)the deceased person’s final allowance amount.

Notes

  1. F1

    Pt. 5 Ch. 2A inserted (with effect in accordance with Sch. 12 para. 17 of the amending Act) by Finance Act 2026 (c. 11), Sch. 12 paras. 4, 17

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