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Contents

Legislation
Inheritance Tax Act 1984

Crossheading Main charges and definitions

  • Section 1 Charge on transfers.
  • Section 2 Chargeable transfers and exempt transfers.
  • Section 3 Transfers of value.
  • Section 3A Potentially exempt transfers.
  • Section 4 Transfers on death.
  • Section 5 Meaning of estate.
  • Section 6 Excluded property.
  • Section 6A “Long-term UK resident”: individuals
  • Section 6B “Long-term UK resident”: young persons
  • Section 6C “Long-term UK resident”: bodies corporate
  1. Main charges and definitions
  2. Transfers of value.

Section 3 | Transfers of value.

From legislation.gov.uk

(1)Subject to the following provisions of this Part of this Act, a transfer of value is a disposition made by a person (the transferor) as a result of which the value of his estate immediately after the disposition is less than it would be but for the disposition; and the amount by which it is less is the value transferred by the transfer.

(2)For the purposes of subsection (1) above no account shall be taken of the value of excluded property which ceases to form part of a person’s estate as a result of a disposition.

(3)Where the value of a person's estate is diminished, and the value—F1

(a)of another person's estate, orF1

(b)of any settled property, other than settled property treated by section 49(1) below as property to which a person is beneficially entitled,F1

is increased by the first-mentioned person’s omission to exercise a right, he shall be treated for the purposes of this section as having made a disposition at the time (or latest time) when he could have exercised the right, unless it is shown that the omission was not deliberate.

(4)Except as otherwise provided, references in this Act to a transfer of value made, or made by any person, include references to events on the happening of which tax is chargeable as if a transfer of value had been made, or, as the case may be, had been made by that person; and “transferor” shall be construed accordingly.

Notes

  1. F1

    Words in s. 3(3) substituted (22.3.2006) by Finance Act 2006 (c. 25), s. 156, Sch. 20 paras. 7, 8

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