Inheritance Tax Act 1984 Schedule 4, paragraph 5

Withdrawal

Paragraph 5 of Schedule 4 deals with the Treasury's power to withdraw a direction for conditional IHT exemption where the circumstances relating to the property or its management no longer justify the exemption continuing.

• The Treasury may withdraw a conditional exemption direction at any time if the facts about the property or its administration no longer warrant the direction's continuation.
• Withdrawal is carried out by the Treasury issuing a written notice to the trustees of the property.
• The notice must specify both the grounds for withdrawal and the date from which the direction ceases to have effect.
• Once withdrawn, the conditional exemption direction no longer applies, meaning the property loses its IHT-exempt status from the specified date.