Inheritance Tax Act 1984 Schedule 6 paragraph 4

Objects of national etc. interest left out of account on death

Schedule 6 paragraph 4 deals with transitional rules for heritage property (objects of national, scientific, historic or artistic interest) whose value was left out of account for estate duty purposes on a death, and how such property is treated when it later becomes subject to inheritance tax or estate duty charges.

• Where heritage property that was exempt from estate duty is sold in a way that does not meet the approved sale requirements, the charge is based on the value of the objects at the date of sale rather than on the actual sale proceeds.
• Where heritage property was left out of account for estate duty and is subsequently the subject of a conditionally exempt transfer, HMRC may elect whether inheritance tax or estate duty is charged when a chargeable event later occurs.
• References in the inheritance tax legislation to conditionally exempt transfers and chargeable events are extended to cover the equivalent estate duty concepts, so that the old and new regimes link together properly.
• When determining which was the last death on which heritage objects passed for estate duty purposes, any death occurring after 6 April 1976 is ignored.