Section 155 | Dwelling conditionally exempt from inheritance tax

(1)Subsection (2) applies to a single-dwelling interest if—

(a)the whole or part of the dwelling has been designated under section 31 of IHTA 1984 (buildings of outstanding historic or architectural interest etc),

(b)an undertaking has been made with respect to the dwelling under section 30 of that Act (conditionally exempt transfers), and

(c)a transfer of value is exempt from inheritance tax by virtue of that designation and that undertaking.

(2)The taxable value of the single-dwelling interest on any day is taken to be zero if no chargeable event has occurred with respect to the dwelling in the time between the transfer of value and the beginning of that day.

(3)Subsection (4) applies to a single-dwelling interest if—

(a)the whole or part of the dwelling has been designated under section 31 of IHTA 1984,

(b)an undertaking has been made with respect to the dwelling under section 78 of that Act (settled property: conditionally exempt occasions), and

(c)a transfer of property or other event is a conditionally exempt occasion by virtue of that designation and that undertaking.

(4)The taxable value of the single-dwelling interest on any day is taken to be zero if no chargeable event has occurred with respect to the dwelling in the time between the conditionally exempt occasion and the beginning of that day.

(5)In this section—

“chargeable event” means an event which is a chargeable event under section 32 of IHTA 1984;

“conditionally exempt occasion” is to be read in accordance with section 78(2) of that Act;

“transfer of value” has the same meaning as in that Act.