Inheritance Tax Act 1984 section 207

Conditional exemption, etc.

Section 207 identifies who is liable to pay inheritance tax when a chargeable event occurs in relation to property that had previously been granted conditional exemption as heritage property (items of national, scientific, historic or artistic interest).

• Where conditionally exempt property is disposed of (by sale, gift or otherwise, but not on death), the person liable for the tax is the person who made the disposal or for whose benefit the property was disposed of.
• Where the exemption conditions are breached or the owner dies, the person liable is whoever would be entitled to receive the sale proceeds or income from them if the property were sold at that time (or immediately after the death).
• Where heritage property held in a settlement had been exempt from the ten-yearly charge and a charge arises under section 79(3A), the persons liable are the trustees of the settlement and any person for whose benefit the property or its income is applied at or after the chargeable event.
• Equivalent liability rules apply to older cases of conditional exemption arising from deaths before 7 April 1976, as covered by Schedule 5 of the Act.