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Legislation
Inheritance Tax Act 1984

CHAPTER I GENERAL

  • Section 18 Transfers between spouses or civil partners.
  • Section 19 Annual exemption.
  • Section 20 Small gifts.
  • Section 21 Normal expenditure out of income.
  • Section 22 Gifts in consideration of marriage or civil partnership.
  • Section 23 Gifts to charities or registered clubs.
  • Section 24 Gifts to political parties.
  • Section 24A Gifts to housing associations.
  • Section 25 Gifts for national purposes, etc.
  • Section 26 Gifts for public benefit.
  • Section 26A Potentially exempt transfer of property subsequently held for national purposes etc.
  • Section 27 Maintenance funds for historic buildings, etc.
  • Section 28 Employee trusts.
  • Section 28A Employee-ownership trusts
  • Section 29 Loans—modifications of exemptions.
  • Section 29A Abatement of exemption where claim settled out of beneficiary’s own resources.
  1. Chapter I · GENERAL
  2. Loans—modifications of exemptions.

Section 29 | Loans—modifications of exemptions.

From legislation.gov.uk

(1)If or to the extent that a transfer of value is a disposition whereby the use of money or other property is allowed by one person to another (“the borrower”), the preceding provisions of this Chapter shall apply to it with the following modification.

(2)For the purposes of section 18 the borrower’s estate shall be treated as increased by an amount equal to the value transferred; and section 18(3) shall not apply.

(3)For the purposes of sections 20 and 22 the transfer of value shall be treated as made by outright gift.

(4)Section 21(1) shall apply as if for the conditions stated in paragraphs (a) and (b) there were substituted the condition that the transfer was a normal one on the part of the transferor.

(5)For the purposes of sections 23 to 25—F1F2F3

(a)the value transferred shall be treated as attributable to the property of which the borrower is allowed the use, and

(b)that property shall be treated as given to, or as becoming the property of, the borrower unless the use allowed includes use for purposes other than charitable purposes or those of a body mentioned in section 24, or 25or where it is land, of a body mentioned in section 24AF1F3

and sections 23(2) to (6), 24 . . . , (3) and (4), 24A(3)and 25(2) shall not apply.

Notes

  1. F1

    Words in s. 29(5) substituted (31.7.1998 with effect in relation to any transfer of value made on or after 17.3.1998) by 1998 c. 36, s. 143(2)(b)

  2. F2

    “(1)(b)”

    repealed by Finance Act 1988 s. 148and Sch. 14, Part X,with effect from 15March 1988.

  3. F3

    Finance Act 1989 s. 171(3),in relation to transfers of value made on or after 14March 1989.

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