Inheritance Tax Act 1984 Schedule 2 paragraph 6

Maintenance funds for historic buildings

Paragraph 6 of Schedule 2 deals with how tax is calculated when property leaves a maintenance fund for historic buildings after there has been a reduction in inheritance tax rates, and the applicable rate is linked to an earlier death.

• When property leaves a historic building maintenance fund and a tax charge arises, the tax rate may be determined by reference to a previous death under Schedule 4 paragraph 14.
• If inheritance tax rates have been reduced between the date of that death and the date the property leaves the fund, the reduced rates are used instead of the rates that were actually in force at the time of death.
• Where more than one rate reduction has occurred since the relevant death, the most recent reduced rate table applies.
• This ensures that taxpayers benefit from any rate reductions, rather than being taxed at the higher historical rates that applied when the death originally occurred.

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