Inheritance Tax Act 1984 section 85

Credit for annual charges under Finance Act 1975

Section 85 allows a credit for annual capital transfer tax previously charged on non-resident trustees under Schedule 5 of the Finance Act 1975, where that credit has not already been given under earlier legislation.

• Annual capital transfer tax was charged on non-resident trustees under paragraph 12(2) of Schedule 5 to the Finance Act 1975.
• If that tax has not already been credited under paragraph 12(3) of that Schedule, section 125 of the Finance Act 1982, or this section itself, it may be set against inheritance tax arising under this Chapter.
• The credit applies to inheritance tax on the settled property or relevant part of it, charged under the rules for settlements without interests in possession.
• The credit cannot be set against tax from which property is exempt under section 79 (the exemption from the ten-yearly charge).