Inheritance Tax Act 1984 section 132

Wasting assets

Section 132 excludes tangible movable property that is a wasting asset from the fall in value relief available under section 131.

• The fall in value relief under section 131 does not apply to tangible movable property that qualifies as a wasting asset.
• A wasting asset is one that had a predictable useful life of fifty years or less immediately before the chargeable transfer took place.
• The predictable useful life is assessed by reference to the purpose for which the transferor held the asset.
• Plant and machinery is always treated as having a predictable useful life of less than fifty years and therefore always counts as a wasting asset.