Inheritance Tax Act 1984 section 57A

Relief where property enters maintenance fund

Section 57A provides inheritance tax relief where settled property in which a deceased person had an interest in possession is transferred into a maintenance fund for historic buildings within two years of the death.

• Where a person with an interest in possession in settled property dies and the property enters a historic buildings maintenance fund within two years, the property is treated as having become subject to that fund on the date of death, so no tax charge arises on any intermediate events.
• For interests acquired on or after 22 March 2006, the relief only applies if the interest was an immediate post-death interest, a disabled person's interest, a transitional serial interest, or fell within section 5(1B).
• The relief does not apply if the transfer into the maintenance fund is conditional or defeasible, if the property is itself an interest in settled property, or if any acquisition for money or money's worth is involved.
• If the value of the property when it enters the maintenance fund is lower than the value attributable to it on death, the relief is limited to that lower value.