Inheritance Tax Act 1984 Schedule 4 paragraph 8

Charge to tax

Schedule 4 paragraph 8 sets out the circumstances in which an inheritance tax charge arises when property leaves a maintenance fund for historic buildings (or is diminished in value by trustee actions), and explains when the devolution of property to qualifying bodies or charities will not escape that charge.

• Property held in a maintenance fund trust that complies with the required conditions and is subject to a Treasury direction may trigger an IHT charge if it leaves the fund or if the trustees act to reduce its value
• No charge arises where property leaves the fund because it is applied for the maintenance, repair, preservation or public access purposes the fund was set up to serve, or because it passes to a qualifying body or charity
• The exemption for property passing to a qualifying body or charity is denied if that body or charity (or another such body or charity) has purchased an interest in the settlement for money or money's worth, including through indirect arrangements
• The rate of tax on any charge under this paragraph is calculated under the special rules in Schedule 4 paragraphs 11 to 15, rather than under the normal IHT rate provisions