Section 26 | Loan charge settlement scheme: inheritance tax

(1)The scheme may provide that, if a person enters into a settlement agreement, amounts of inheritance tax payable by the person which—

(a)arise as a result of transfers of value and other occasions of charge occurring—

(i)in connection with a settlement (within the meaning of section 43 of IHTA 1984) used as part of arrangements under which the relevant Schedule 11 or 12 to F(No. 2)A 2017 loans and quasi-loans were made, and

(ii)before the end of 3 months after the date on which the settlement offer, in relation to the settlement agreement, was made to the person, and

(b)have not yet been paid,

cease to payable by the person.

(2)The scheme may provide, if a person enters into a settlement agreement, for adjustments in amounts of inheritance tax payable by other persons which—

(a)arise as mentioned in subsection (1)(a),

(b)are attributable to property used for making the relevant Schedule 11 or 12 to F(No. 2)A 2017 loans and quasi-loans, and

(c)have not yet been paid.

(3)The scheme must provide that, if a person enters into a settlement agreement, no relevant Schedule 11 or 12 to F(No. 2)A 2017 loan or quasi-loan is to be treated as a liability for the purposes of section 5(3) of IHTA 1984.

(4)In this section, references to relevant Schedule 11 or 12 to F(No. 2)A 2017 loans and quasi-loans are to the Schedule 11 or 12 to F(No. 2)A 2017 loans and quasi-loans to which the loan charge amounts to which the settlement agreement applies are connected.

(5)Expressions used in this section and section 25 have the same meaning in this section as they have in section 25.

(6)In this section, “transfer of value” has the same meaning as in IHTA 1984 (see, in particular, section 3 of that Act).