Inheritance Tax Act 1984 section 130

Interpretation

Section 130 defines key terms and sets out the allowable expenses used throughout the woodlands relief chapter of the Inheritance Tax Act 1984.

• The value transferred on a death means the value transferred by the chargeable transfer made on that death.
• Net proceeds of sale or net value of trees or underwood means the amount after deducting allowable expenses under this chapter, but only to the extent those expenses are not already deductible for income tax purposes.
• Disposal of trees or underwood includes disposal of any interest in the trees or underwood, not just an outright sale.
• Allowable expenses cover the costs of disposing of the trees or underwood, replanting within three years of disposal (or longer if HMRC permits), and replanting to replace previously disposed-of trees where those costs were not claimed on the earlier disposal.