Finance Act, 2000

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Amendment of Second Schedule to Principal Act.

145.—(1) The Second Schedule to the Principal Act is amended—

(a) in Part I, by the substitution of the following paragraphs for paragraphs 1 to 7:

“1. In this Schedule—

‘group threshold’, in relation to a taxable gift or a taxable inheritance taken on a particular day, means—

(a) £300,000, where—

(i) the donee or successor is on that day the child, or minor child of a deceased child, of the disponer, or

(ii) the successor is on that day a parent of the disponer and—

(I) the interest taken is not a limited interest, and

(II) the inheritance is taken on the death of the disponer;

(b) £30,000, where the donee or successor is on that day, a lineal ancestor, a lineal descendant (other than a child, or a minor child of a deceased child), a brother, a sister, or a child of a brother or of a sister of the disponer;

(c) £15,000, where the donee or successor (who is not a spouse of the disponer) does not, on that day, stand to the disponer in a relationship referred to in subparagraph (a) or (b);

‘the consumer price index number’, in relation to a year, means the All Items Consumer Price Index Number for that year as compiled by the Central Statistics Office and expressed on the basis that the consumer price index number at mid-November 1996 is 100;

‘Table’ means the Table contained in Part II of this Schedule;

‘threshold amount’ in relation to the computation of tax on any aggregate of taxable values under paragraph 3, means the group threshold that applies in relation to all of the taxable gifts and taxable inheritances included in that aggregate but, in computing under this Schedule the tax chargeable on a taxable gift or taxable inheritance taken after 31 December 2000, that group threshold shall, for the purposes of this definition, be multiplied by the figure, rounded to the nearest third decimal place, determined by dividing by 104.8 the consumer price index number for the year immediately preceding the year in which that taxable gift or taxable inheritance is taken.

2. In the Table ‘Value’ means the appropriate aggregate referred to in paragraph 3.

3. The tax chargeable on the taxable value of a taxable gift or a taxable inheritance (hereafter in this Schedule referred to as the first-mentioned gift or inheritance) taken by a donee or successor shall be of an amount equal to the amount by which the tax computed on aggregate A exceeds the tax computed on aggregate B, where—

(a) aggregate A is the aggregate of the following:

(i) the taxable value of the first-mentioned gift or inheritance, and

(ii) the taxable value of each and every taxable gift and taxable inheritance taken previously by the said donee or successor on or after 2 December 1988, which has the same group threshold as the first-mentioned gift or inheritance,

(b) aggregate B is the aggregate of the taxable values of all such taxable gifts and taxable inheritances so previously taken which have the same group threshold as the first-mentioned gift or inheritance, and

(c) the tax on an aggregate is computed at the rate or rates of tax applicable under the Table to that aggregate:

Provided that—

(i) in a case where no such taxable gift or taxable inheritance was so previously taken, the amount of the tax computed on aggregate B shall be deemed to be nil, and

(ii) the amount of an aggregate that comprises only a single taxable value shall be equal to that value.

4. In the Table any rate of tax shown in the second column is that applicable to such portion of the value (within the meaning of paragraph 2) as is shown in the first column.

5. For the purposes of this Schedule, all gifts and inheritances which have the same group threshold and which are taken by a donee or successor on the same day shall count as one, and to ascertain the amount of tax payable on one such gift or inheritance of several so taken on the same day, the amount of tax computed under this Schedule as being payable on the total of such gifts and inheritances so taken on that day shall be apportioned rateably, according to the taxable values of the several taxable gifts and taxable inheritances so taken on that day.”,

(b) by the substitution of the following Part for Part II:

“PART II

TABLE

”.

(2) This section shall have effect in relation to gifts or inheritances taken on or after 1 December 1999.