Inheritance Tax Act 1984 section 40

Gifts made separately out of different funds

Section 40 deals with how inheritance tax rules apply when gifts arising from a single transfer of value come from separate funds, requiring each fund to be treated independently.

• Where gifts on a transfer of value take effect from different funds, the tax rules in the Chapter must be applied separately to each fund.
• Necessary adjustments must be made to the values and amounts when applying the rules to each fund individually.
• "Gifts" in this context means any benefit arising from a disposition or rule of law by which property passes to a person or becomes applicable for a purpose on the making of a transfer.
• The reference to "disposition or rule of law" is intended to cover property passing under a will or on intestacy.