Inheritance Tax Act 1984 section 9

Transitional provisions on reduction of tax

Section 9 ensures that transitional rules apply whenever Parliament changes the rates of inheritance tax by introducing a new rate table.

• When Parliament reduces inheritance tax by substituting a new table of rates in Schedule 1 of the Act, transitional provisions automatically come into play.
• The transitional provisions are set out in Schedule 2 of the Inheritance Tax Act 1984.
• These provisions manage the changeover between old and new tax rates, ensuring that transfers are taxed fairly during the transition period.
• The section was amended by the Finance Act 1986 when the tax was renamed from capital transfer tax to inheritance tax.