Inheritance Tax Act 1984 section 35A

Variation of undertakings

Section 35A deals with how undertakings given in connection with conditionally exempt transfers of heritage property can be varied, either by agreement or, failing agreement, by direction of the tribunal.

• Undertakings given for conditional exemption on heritage property can be varied at any time by agreement between HMRC and the person bound by the undertaking.
• If HMRC proposes a variation and the person bound by the undertaking fails to agree within six months, the tribunal may direct the variation if it considers this just and reasonable in all the circumstances.
• Any date specified by the tribunal for the variation to take effect must be at least 60 days after the date of the tribunal's direction.
• A tribunal direction does not take effect if, before the specified date, a different variation is agreed between HMRC and the person bound by the undertaking.