Inheritance Tax Act 1984 section 67

Added property, etc.

Section 67 deals with adjustments to the ten-year anniversary charge calculation where a settlor has added property to a settlement after 8 March 1982, and provides relief against potential double charges where property has already been taxed under exit charges.

• Where a settlor adds value to a settlement after it commenced and after 8 March 1982 but before a ten-year anniversary, the settlor's cumulative total used to calculate the rate of tax may need to be recalculated using the seven years prior to the addition rather than the seven years prior to the settlement's creation, if this produces a higher figure.
• A transfer that increases the value of settled property (without increasing the amount of property) can be disregarded if it was not primarily intended to increase the value and the increase did not exceed 5% of the value immediately before the transfer.
• Different rules apply depending on whether the settlement commenced before or after 27 March 1974: for post-March 1974 settlements the cumulative total is replaced with the greater figure, whereas for pre-March 1974 settlements the cumulative total is increased by the additional amount.
• Where property in the settlement has already been subject to an exit charge under section 65 within the ten years before the anniversary, the cumulative total is reduced by the lesser of the amount previously charged and the value now being charged, preventing a double charge on the same property.

---