- abandonment programme
means an abandonment programme approved under Part 4 of the Petroleum Act 1998 (including such a programme as revised);
- acceptance period
has the same meaning as in section 223C.
- accountant
means a member of an incorporated society of accountants;
- adopted person
means—
- agricultural property
has the same meaning as in Chapter 2 of Part 5, • “enactment” includes an enactment contained in or made under an Act of the Scottish Parliament, • “specified” means specified by regulations made by the Treasury.
- allied headquarters
means any international military headquarters established under the North Atlantic Council;
- allowance on death
means—
- allowed period
means the period of three years or such longer period as the Board may allow.
- alteration
includes extinguishment, and • “close company” has the same meaning as in Part IV of this Act.
- amount
includes value;
- Appropriate persons
means—
- appropriately reduced
means reduced by the amount (if any) by which the amount on which tax was charged at the rate of nil per cent. on the death of the survivor was increased by reason of the operation of section 8A above by virtue of the position of the deceased person.
- arrangements
includes any scheme, transaction or series of transactions, agreement or understanding (whether or not legally enforceable and whenever entered into) and any associated operations.
- asbestos compensation settlement
means a settlement—
- ascertained residue
means property which, having ceased to be held by the personal representatives as such, is held as part of the residue;
- asset
means an asset within the scope of the dormant assets scheme (see section 1(6) of the 2022 Act);
- associated operations
means, subject to subsection (2) below, any two or more operations of any kind, being— whether those operations are effected by the same person or different persons, and whether or not they are simultaneous;
- authorised reclaim fund
has the same meaning as in the Dormant Assets Acts 2008 to 2022;
- authorised unit trust
means a scheme which is a unit trust scheme for the purposes of the Income Tax Acts (see section 1007 of the Income Tax Act 2007) and in the case of which an order under section 243 of the Financial Services and Markets Act 2000 is in force;
- bank
has the meaning given by section 991 of the Income Tax Act 2007.
- barrister
includes a member of the Faculty of Advocates;
- benefit entitlement
means so much of the value of the notional pension property of the deceased in relation to the scheme as is attributable on a just and reasonable apportionment, having regard to appropriate actuarial assumptions, to benefits that have been paid, or are or will be payable, to that person.
- bereaved minor
means a person—
- business
includes a business carried on in the exercise of a profession or vocation, but does not include a business carried on otherwise than for gain.
- capital payment
means any money or money’s worth which does not constitute income for the purposes of income tax.
- charges on residue
means, in relation to the estate of a deceased person, the following liabilities properly payable out of the estate and interest payable in respect of those liabilities—
- child
includes an illegitimate child, an adopted child and a step-child and “parent”, “descendant” and “ancestor” shall be construed accordingly.
- close company
has the same meaning as in Part IV of this Act;
- component
means a component of the estate, as defined in paragraph 3 of Schedule 1A;
- conditionally exempt transfer
includes a conditionally exempt occasion within the meaning of section 78(2) of this Act.
- conditionally relievable occasion
means an occasion on which—
- consumer prices index
means the all items consumer prices index published by the Statistics Board, •... •...
- contract for an off-plan purchase
means a contract for the acquisition of land consisting of, or including, a building, or part of a building, that is to be constructed or adapted for use as a dwelling.
- contracts of long-term insurance
means contracts which fall within Part II of Schedule 1 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001.
- death election
means an election made under section 267ZC in circumstances where Condition B in subsection (4) of that section is met;
- deed
includes any disposition, arrangement, contract, resolution, instrument or writing.
- dependent relative
means in relation to any person— (a) a relative of his, or of his spouse or civil partner, who is incapacitated by old age or infirmity from maintaining himself, or (b) his mother or father or his spouse's or civil partner's mother or father;
- designated
means designated for the purpose in question by or under any Order in Council made for giving effect to any international agreement. • “the EU civilian staff” means— (a) civilian personnel seconded by a member State to an EU institution for the purposes of activities (including exercises) relating to the preparation for, and execution of, tasks mentioned in Article 43(1) of the Treaty on European Union (tasks relating to a common security and defence policy), as amended from time to time, and (b) civilian personnel (other than locally hired personnel)— (a) made available to the EU by a member State to work with designated international military headquarters or a force of a designated country, or (b) otherwise made available to the EU by a member State for the purposes of activities of the kind referred to in paragraph (a).
- disability assistance
means disability assistance given in accordance with regulations made under section 31 of the SS(S)A 2018, • “pension age disability payment” means a category of disability assistance specifically for older people, • “Scottish adult disability living allowance” means a category of disability assistance specifically for adults which takes the form of a living allowance, • “SSCBA 1992” means the Social Security Contributions and Benefits Act 1992, • “SSCB(NI)A 1992” means the Social Security Contributions and Benefits (Northern Ireland) Act 1992,... • “SS(S)A 2018” means the Social Security (Scotland) Act 2018, and • “WRA 2012” means the Welfare Reform Act 2012.
- disabled person
means a person who—
- disposition
includes a disposition effected by associated operations;
- double taxation relief arrangements
means arrangements having effect under section 158(1);
- dwelling
has the same meaning as it has for the purposes of paragraphs 16B to 16H of Schedule 2 to the Finance Act 2019;
- effective rate
means the rate found by expressing the tax chargeable as a percentage of the amount by reference to which it is charged.
- Emergency circumstances
means circumstances which are present or imminent and are causing or likely to cause—
- Emergency responder
means—
- enactment
includes an enactment contained in or made under an Act of the Scottish Parliament, • “specified” means specified by regulations made by the Treasury.
- environmental management agreement
means a legally enforceable agreement between an occupier or other person with a right in land and a public authority which— (a) is entered into for the purpose of protecting, restoring or enhancing the natural environment, or natural resources, of land or water, and (b) in practice requires the land to be used and managed in a way that would (apart from this section) prevent it from being agricultural property occupied for the purposes of agriculture;
- estate duty
includes estate duty under the law of Northern Ireland;
- exempt body
means a charity or a body mentioned in subsection (1)(b), or (c) above;
- foreign currency account
means any account other than one denominated in sterling,...
- foster parent
means—
- general power
means a power or authority enabling the person by whom it is exercisable to appoint or dispose of property as he thinks fit.
- Government department
includes a Northern Ireland department;
- held in a pension pot
means available for the purpose of providing benefits to or in respect of one specific member of the scheme;
- heritable security
means any security capable of being constituted over any interest in land by disposition or assignation of that interest in security of any debt and of being recorded in the General Register of Sasines;
- HMRC
means Her Majesty's Revenue and Customs;
- immediate post-death interest
means an immediate post-death interest for the purposes of Chapter 2 of Part 3 (see section 49A above);
- incumbrance
includes any heritable security, or other debt or payment secured upon heritage;
- Inland Revenue charge
means a charge imposed by virtue of section 237 above;
- interest in UK land
has the same meaning as it has for the purposes of section 1A(3)(b) of the 1992 Act (see section 1C of that Act);
- international organisation
means an organisation of which—
- land
includes pasture and woodland;
- lifetime election
means any other election made under section 267ZC.
- local authority
has the meaning given by section 1130 of the Corporation Tax Act 2010;
- long-term residence change
means—
- long-term UK resident
has the meaning given by sections 6A to 6C;
- market maker
means a person who—
- matter in question
means the matter to which an appeal relates;
- mortgage
includes a heritable security and a security constituted over any interest in movable property;
- national interest
includes interest within any part of the United Kingdom;
- newspaper holding company
means a company which— (a) has as its only or principal asset shares in a newspaper publishing company, and (b) has powers of voting on all or most questions affecting the publishing company as a whole which if exercised would yield a majority of the votes capable of being exercised on them;
- newspaper publishing company
means a company whose business consists wholly or mainly in the publication of newspapers in the United Kingdom;
- nil-rate band maximum
has the meaning given by section 8A(7);
- non-UK resident
means not resident in the United Kingdom.
- notice of intention to retire in favour of a new tenant
means, in the case of any property, a notice or other written intimation given to the landlord by the tenant, or (in the case of a joint tenancy or tenancy in common) all of the tenants, of the property indicating, in whatever terms, his or their wish that one or more persons identified in the notice or intimation should become the tenant of the property;
- open-ended investment company
means an open-ended investment company within the meaning given by section 236 of the Financial Services and Markets Act 2000 which is incorporated in the United Kingdom;
- operation
includes an omission.
- ordinary share capital
has the meaning given by section 1119 of the Corporation Tax Act 2010.
- ordinary shares
means shares which carry either— (a) a right to dividends not restricted to dividends at a fixed rate, or (b) a right to conversion into shares carrying such a right as is mentioned in paragraph (a) above, • “subsidiary” has the meaning given by section 1159 of and Schedule 6 to the Companies Act 2006;
- overseas territory
means any country or territory outside the United Kingdom;
- parent
has the meaning given by section 71H.
- parental responsibilities
has the meaning given by section 1(3) of the Children (Scotland) Act 1995.
- parental responsibility
has the same meaning as in the Children Act 1989.
- part disposal
means a disposal of property which does not consist of or include the whole of each property which is one of the associated properties and of which there has been a conditionally exempt transfer.
- participator
has the meaning given in section 102;
- partnership
means—
- payment
includes a transfer of assets other than money;
- pension
has the same meaning as in Part 4 of that Act (see section 165(2) of that Act);
- pension age disability payment
means a category of disability assistance specifically for older people, • “Scottish adult disability living allowance” means a category of disability assistance specifically for adults which takes the form of a living allowance, • “SSCBA 1992” means the Social Security Contributions and Benefits Act 1992, • “SSCB(NI)A 1992” means the Social Security Contributions and Benefits (Northern Ireland) Act 1992,... • “SS(S)A 2018” means the Social Security (Scotland) Act 2018, and • “WRA 2012” means the Welfare Reform Act 2012.
- Pension scheme
has the same meaning as in Part 4 of the Finance Act 2004 (see section 150 of that Act).
- personal representatives
includes any person by whom or on whose behalf an application for a grant of administration or for the resealing of a grant made outside the United Kingdom is made, and any such person as mentioned in section 199(4)(a) above;
- persons
includes unborn persons;
- post-occupation time
means a time—
- post-review period
means—
- property
includes rights and interests of any description but does not include a settlement power;
- property concerned
means property to the value of which the value transferred by the transfer is wholly or partly attributable.
- protected testamentary disposition
means a disposition effected by provisions of the settlor's will that at the settlor's death are, in substance, the same as they were immediately before 10 December 2014.
- public authority
means a person that is in entering the environmental management agreement— (a) exercising public functions, or (b) acting under arrangements with a public authority in relation to the exercise of the authority’s functions.
- public display
means display to which the public are admitted, on payment or not, but does not include display with a view to sale;
- purchaser
means a purchaser in good faith for consideration in money or money’s worth other than a nominal consideration and includes a lessee, mortgagee or other person who for such consideration acquires an interest in the property in question;
- qualifying component
means a component (or deemed single component) for which the donated amount is at least 10% of the baseline amount, as determined in accordance with Schedule 1A.
- qualifying foreign currency account
means a foreign currency account with a bank...;
- qualifying interest in possession
has the same meaning as in Chapter III of this Part of this Act.
- qualifying investments
means (subject to subsection (2) below) shares or securities which are quoted at the date of the death in question holdings in a unit trust which at that date is an authorised unit trust, shares in an open-ended investment company... and shares in any common investment fund established under section 42 of the Administration of Justice Act 1982;
- qualifying non-UK pension scheme
has the meaning given in section 271A;
- qualifying property
means—
- qualifying sale
has the same meaning as in section 131 above;
- quarter
means period of three months.
- recognised stock exchange
has the meaning it has in the Income Tax Acts (see subsection (1) of section 1005 of the Income Tax Act 2007), and subsection (3) of that section (meaning of “listed” on a recognised stock exchange) applies for the purposes of this Act as it applies for the purposes of the Income Tax Acts;
- registered club
has the same meaning as in Chapter 9 of Part 13 of the Corporation Tax Act 2010.
- registered pension scheme
has the same meaning as in Part 4 of the Finance Act 2004;
- related person
means a person other than P where—
- relevant beneficiary
means a person who—
- relevant business property
means, in relation to any transfer of value,—
- relevant day
means—
- relevant decoration or award
means a decoration or other similar award—
- relevant lapse period
means—
- relevant overseas information
means information which is provided to HMRC by an authority in a territory outside the United Kingdom under—
- relevant percentage
means the percentage specified in the last row of the third column of the Table in Schedule 1.
- relevant period
means— (a) the period beginning with 6 April 2025 and ending with the first ten-year anniversary falling after that date, and (b) each subsequent period of ten years.
- relevant property
has the meaning it has in Chapter 3 of Part 3 (see section 58).
- Relevant related transfer
means—
- relevant time
means a time after the chargeable transfer but before—
- relevant transaction
means a transaction which is— but which does not give rise to an adjustment, under any of the preceding sections of this Chapter, in the market value of the transferred property on the relevant date.
- relevant UK property
means—
- remaining liability
means the liability mentioned in subsection (1) so far as subsections (2) and (3) do not permit it to be taken into account;
- reorganisation of share capital
means a transaction to which section 127 of the 1992 Act (equation of original shares and new holding) applies or would apply but for section 134 of that Act;
- reversionary interest
has the meaning given by section 47 above;
- scheme continuation payment
means a payment made— (a) in relation to a registered pension scheme, in accordance with pension rule 2 in section 165(1) of the Finance Act 2004 (continuing payments after death);
- Scottish adult disability living allowance
means a category of disability assistance specifically for adults which takes the form of a living allowance, • “SSCBA 1992” means the Social Security Contributions and Benefits Act 1992, • “SSCB(NI)A 1992” means the Social Security Contributions and Benefits (Northern Ireland) Act 1992,... • “SS(S)A 2018” means the Social Security (Scotland) Act 2018, and • “WRA 2012” means the Welfare Reform Act 2012.
- section 615(3) scheme
means a superannuation fund to which section 615(3)of the Taxes Act 1988 applies;
- security
has the same meaning as in section 38A of that Act.
- Service person
means a person who is a member of the armed forces of the Crown or a civilian subject to service discipline (within the meaning of the Armed Forces Act 2006).
- Settlement
means any disposition or dispositions of property, whether effected by instrument, by parol or by operation of law, or partly in one way and partly in another, whereby the property is for the time being— or would be so held or charged or burdened if the disposition or dispositions were regulated by the law of any part of the United Kingdom;
- settlement power
has the meaning given by section 47A above;
- shares
includes securities;
- specific disposition
has the meaning given in section 947(6) of the Corporation Tax Act 2009, and
- specific gift
means any gift other than a gift of residue or of a share in residue.
- specified
means specified by regulations made by the Treasury.
- specified steps
means such steps as are agreed between the Treasury and the person giving the undertaking, and are set out in it.
- subsidiary
has the meaning given by section 1159 of and Schedule 6 to the Companies Act 2006;
- tax
means inheritance tax;
- tax advantage
has the meaning given in section 208 of the Finance Act 2013;
- tax year
means a year beginning with 6 April and ending with the following 5 April;
- taxable fraction
means the fraction of which the numerator is the value, as determined apart from this Chapter, of the part of the holding referred to in paragraph (a) of that subsection and the denominator is the value, as so determined, of the entirety of that holding.
- the 1992 Act
means the Taxation of Chargeable Gains Act 1992.
- the 2008 Act
means the Dormant Bank and Building Society Accounts Act 2008;
- the 2022 Act
means the Dormant Assets Act 2022;
- the actual settlement
means that settlement.
- the actual settlor
means the person who is the settlor of the property in relation to the settlement first mentioned in section 80(1);
- the allowed period
means—
- the applicable cap
means— (a) in relation to the first relevant period, £125,000 multiplied by the number of whole successive quarters in the period;
- the appropriate fraction
means a fraction of which— and in paragraph (b) above “the unreduced value transferred” means the amount which would be the value transferred by the transfer but for the reduction required by sections 104 and 116 below.
- the Board
means the Commissioners of Inland Revenue;
- the chargeable transfer
means the chargeable transfer mentioned in paragraph 1(1);
- the Criminal Injuries Compensation Scheme
means—
- the estate
means D's estate immediately before death;
- the EU civilian staff
means— (a) civilian personnel seconded by a member State to an EU institution for the purposes of activities (including exercises) relating to the preparation for, and execution of, tasks mentioned in Article 43(1) of the Treaty on European Union (tasks relating to a common security and defence policy), as amended from time to time, and (b) civilian personnel (other than locally hired personnel)— (a) made available to the EU by a member State to work with designated international military headquarters or a force of a designated country, or (b) otherwise made available to the EU by a member State for the purposes of activities of the kind referred to in paragraph (a).
- the later transfer
has the meaning given in section 141(1);
- the loss on sale
means the amount determined in accordance with section 179(1) below;
- the new tenant
means— (a) the person or persons identified in a notice of intention to retire in favour of a new tenant as the person or persons who it is desired should become the tenant of the property to which that notice relates;
- the original property
means the property which, in relation to the chargeable transfer referred to in subsection (1) or subsection (2) above, was either agricultural property to which section 116 above applied or shares or securities of a company owning agricultural property to which that section applied by virtue of section 122(1) above;
- the permitted period
means—
- the person entitled to the interest in possession
means the person above referred to.
- the relevant date
means, in a case within paragraph (a) above, the date of the death, and in a case within paragraph (b), the date of the qualifying sale.
- the relevant earlier occasion
means the occasion (or last occasion) when the property became property to which section 71 above applied.
- the relevant interest
has the meaning given by subsection (1) of section 54A above;
- the relevant period
means the period given by subsection (7A) below or, if shorter, the period given by subsection (7B) below.
- the relevant time
means— (a) the time the relevant reduction occurs, or (b) if later, the time section 74A first applied;
- the relevant transfer
means the transfer of value that D is treated (under section 4) as having made immediately before death.
- the remainder
means everything included in the person's estate immediately before the person's death other than the person's qualifying residential interest.
- the repealed enactments
means the enactments repealed by this Act.
- the special rate property
has the meaning given by subsection (3) of that section.
- the tax year 2025-26
means the tax year beginning with 6 April 2025 (and any corresponding expression in which two years are similarly mentioned is to be read in the same way);
- the Taxes Act 1970
means the Income and Corporation Taxes Act 1970;
- The Taxes Act 1988
means the Income and Corporation Taxes Act 1988;
- the TCEA 2007
means the Tribunals, Courts and Enforcement Act 2007;
- the time of the disposition
means—
- the transferee
means the person whose property the original property became on that chargeable transfer or, where on the transfer the original property became or remained settled property in which no qualifying interest in possession (within the meaning of Chapter III of Part III of this Act) subsists, the trustees of the settlement.
- the tribunal
means the First-tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal, • “trustee” shall be construed in accordance with section 45 above;and • “the 1992 Act” means the Taxation of Chargeable Gains Act 1992.
- the unreduced value transferred
means the amount which would be the value transferred by the transfer but for the reduction required by sections 104 and 116 below.
- trade or professional compensation fund
means a fund which is maintained or administered by a representative association of persons carrying on a trade or profession and the only or main objects of which are compensation for or relief of losses or hardship that, through the default or alleged default of persons carrying on the trade or profession or of their agents or servants, are incurred or likely to be incurred by others.
- transaction
includes a series of transactions and any associated operations.
- transitional serial interest
means a transitional serial interest for the purposes of Chapter 2 of Part 3 (see section 49B above);
- transitionally-protected interest
means— (a) an interest in possession to which a person was beneficially entitled immediately before, and on, 22nd March 2006, or (b) a transitional serial interest.
- trust corporation
means a person that is a trust corporation for the purposes of the Law of Property Act 1925 or for the purposes of Article 9 of the Administration of Estates (Northern Ireland) Order 1979.
- unadministered estate
means all the property for the time being held by personal representatives as such, excluding property devolving on them otherwise than as assets for the payment of debts and excluding property that is the subject of a specific disposition, and making due allowance for outstanding charges on residue and for any adjustments between capital and income remaining to be made in due course of administration;
- United Kingdom trust territory
means a territory administered by the Government of the United Kingdom under the trusteeship system of the United Nations;
- withholding notice
means a notice under subsection (1) or (2).
- year
means the period beginning with 26th March 1974 and ending with 5th April 1974, and any subsequent period of twelve months ending with 5th April;
- young person
means an individual who was under the age of 20 immediately before the current tax year.