Inheritance Tax Act 1984 section 236

Special cases

Section 236 deals with special rules for how interest is calculated on inheritance tax in particular circumstances, including additional tax arising on death within seven years of a transfer, family provision orders, and certain Scottish legitim claims.

• Where a transferor or settlor dies within seven years of making a chargeable transfer, interest on the additional tax arising runs as if the transfer had been made on the date of death
• Tax adjustments resulting from court orders under the Inheritance (Provision for Family and Dependants) Act 1975 do not carry interest for any period before the court order is made
• Tax repayable on claims under section 146(2) (family provision) or section 150 (voidable transfers) carries interest from the date the claim is made, at the rate set under section 178 of the Finance Act 1989
• Tax repayable under section 147(2) (Scottish legitim) carries interest from the date the tax was originally paid, and any additional tax charged under section 147(4) carries interest from the end of the normal due date period — in both cases, this interest is not treated as income for tax purposes