Inheritance Tax Act 1984 Schedule 4 paragraphs 9–10

Exceptions from charge

Section 9–10 of Schedule 4 sets out the circumstances in which property leaving a maintenance fund for historic buildings is exempt from the inheritance tax charge that would otherwise arise under paragraph 8.

• Property transferred into another qualifying maintenance fund settlement within the permitted period (30 days, or two years if the settlor has died) is exempt from the paragraph 8 exit charge, provided the transferor did not acquire the property for money or money's worth.
• If the value of the property drops on entering the new settlement, tax is charged only on the amount by which the original chargeable amount exceeds the value in the new settlement (after deducting any consideration received).
• Property that passes back to the settlor, their spouse or civil partner, or (within two years of the settlor's death) their widow, widower or surviving civil partner, is also exempt from the exit charge, subject to similar anti-avoidance rules preventing the exemption where the beneficiary acquired their interest for money or money's worth.
• The exemption for property returning to the settlor or family does not apply where the property was previously relevant property that entered the fund without an exit charge, where it moved between maintenance fund settlements without charge, or where the person becoming entitled is not a long-term UK resident at the time they become entitled.