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Legislation
Inheritance Tax Act 1984

CHAPTER II ESTATE ON DEATH

  • Section 171 Changes occurring on death.
  • Section 172 Funeral expenses.
  • Section 173 Expenses incurred abroad.
  • Section 174 Income tax and unpaid inheritance tax.
  • Section 175 Liability to make future payments, etc.
  • Section 175A Discharge of liabilities after death
  • Section 176 Related property etc.—sales.
  • Section 177 Scottish agricultural leases.
  1. Chapter II · ESTATE ON DEATH
  2. Income tax and unpaid inheritance tax.

Section 174 | Income tax and unpaid inheritance tax.

From legislation.gov.uk

(1)In determining the value of a person’s estate immediately before his death, allowance shall be made for—

(a)any liability for income tax in respect of an offshore income gain, within the meaning of regulations under section 354(1) of the Taxation (International and Other Provisions) Act 2010, arising on a disposal which is deemed, under such regulations (see regulation 34 of the Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001)), to occur on the death; andF1F2

(b)any liability to income tax arising under Chapter 8 of Part 4 of the Income Tax (Trading and Other Income) Act 2005 (deeply discounted securities) on a transfer which is treated as taking place by virtue of section 437(2) of that Act.F3F4F5

(2)Where in determining the value of a person’s estate immediately before his death a liability for inheritance tax is taken into account, then, if that tax or any part of it is not in the event paid out of the estate, the value of the estate immediately before his death shall be treated as increased by an amount equal to that tax or so much of it as is not so paid.F6

Notes

  1. F1

    Words in s. 174(1)(a) substituted (1.12.2009 with effect as mentioned in reg. 1(2) of the amending S.I.) by The Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001), reg. 125 (with Sch. 1)

  2. F2

    Words in s. 174(1)(a) substituted (1.4.2010 with effect as mentioned in s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 374, Sch. 8 para. 162 (with Sch. 9 paras. 1-9, 22)

  3. F3

    Words in s. 174(1)(b) substituted (29.4.1996 with effect as mentioned in s. 105, Sch. 14 para. 2(2) of the amending Act) by 1996 c. 8, s. 104, Sch. 14 para. 2(1)

  4. F4

    Words in s. 174(1)(b) substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), ss. 882, 883, Sch. 1 para. 396(a) (with Sch. 2)

  5. F5

    Words in s. 174(1)(b) substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), ss. 882, 883, Sch. 1 para. 396(b) (with Sch. 2)

  6. F6

    See Finance Act 1986 s. 100(1)and (2)—for any liability to tax arising on and after 25July 1986any reference in the legislation to capital transfer tax has effect as a reference to inheritance tax.

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