Inheritance Tax Act 1984 section 8C

Section 8A and subsequent charges

Section 8C adjusts the transferable nil-rate band when a subsequent inheritance tax charge arises on assets that were originally linked to the deceased person's death, such as conditionally exempt property or deferred woodlands relief.

• When conditionally exempt heritage property, associated property, or woodlands relief property triggers a later tax charge by reference to the deceased's death, the transferred nil-rate band must be recalculated
• If the later charge arises before the survivor dies, a formula reduces the percentage of unused nil-rate band available for transfer: (E ÷ NRBMD − TA ÷ NRBME) × 100, where TA is the amount on which the later tax is charged and NRBME is the nil-rate band at the time of that charge
• If there have been multiple such charges before the survivor's death, the TA ÷ NRBME fractions from all events are aggregated to produce a cumulative reduction
• If the later charge arises after the survivor's death, the deceased's personal nil-rate band maximum is reduced by the amount of any increase that was given to the survivor's nil-rate band under section 8A

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