Inheritance Tax Act 1984 section 32

Chargeable events

Section 32 sets out the circumstances in which inheritance tax becomes chargeable on property that previously received conditional exemption, and the exceptions that can prevent a charge from arising.

• Tax is charged when a chargeable event first occurs after a conditionally exempt transfer — or, if the transfer was potentially exempt, after the transferor's death
• A chargeable event arises if the Treasury is satisfied that an undertaking given in connection with the exemption has not been observed in a material respect
• The death of the person beneficially entitled to the property, or any disposal of it (whether by sale, gift or otherwise), is also a chargeable event unless an exception applies
• Exceptions exist where the property passes to a national body or is accepted in lieu of tax, or where the death or disposal itself qualifies as a further conditionally exempt transfer

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