Inheritance Tax Act 1984 section 147

Scotland: legitim etc.

Section 147 deals with the inheritance tax treatment of Scottish estates where a testator dies leaving both a surviving spouse or civil partner and a person under 18 who is entitled to claim legitim (or equivalent civil partnership rights), and the will's provision for the spouse or civil partner would leave insufficient estate to satisfy those claims.

• The default rule charges tax as if legitim has been claimed in full, restricting spouse or civil partner exemption accordingly, but allows a tax repayment if the claim is later renounced.
• Executors may alternatively elect (in writing, within two years of death or a longer permitted period) to allow full spouse or civil partner exemption at death, with additional tax charged later if legitim is actually claimed.
• A person is treated as having claimed legitim unless they renounce before turning 18, or within two years of turning 18 (or a longer period permitted by HMRC); if the person dies before 18, the same rules apply to their executors.
• Normal time limits for repaying overpaid tax and for collecting underpaid tax after a certificate of discharge are disapplied, and HMRC may adjust any transferable nil-rate band claim that was overstated as a result.