Search Legislation

Advanced Search

Capital Transfer Tax Act 1984

Status:

This is the original version (as it was originally enacted).

  1. Introductory Text

  2. PART I General

    1. Main charges and definitions

      1. 1.Charge on transfers

      2. 2.Chargeable transfers and exempt transfers

      3. 3.Transfers of value

      4. 4.Transfers on death

      5. 5.Meaning of estate

      6. 6.Excluded property

    2. Rates

      1. 7.Rates

      2. 8.Indexation of rate bands

      3. 9.Transitional provisions on reduction of tax

    3. Dispositions that are not transfers of value

      1. 10.Dispositions not intended to confer gratuitous benefit

      2. 11.Dispositions for maintenance of family

      3. 12.Dispositions allowable for income tax, or conferring retirement benefits

      4. 13.Dispositions by close companies for benefit of employees

      5. 14.Waiver of remuneration

      6. 15.Waiver of dividends

      7. 16.Grant of tenancies of agricultural property

      8. 17.Changes in distribution of deceased's estate, etc.

  3. PART II Exempt Transfers

    1. CHAPTER I General

      1. 18.Transfers between spouses

      2. 19.Annual exemption

      3. 20.Small gifts

      4. 21.Normal expenditure out of income

      5. 22.Gifts in consideration of marriage

      6. 23.Gifts to charities

      7. 24.Gifts to political parties

      8. 25.Gifts for national purposes, etc.

      9. 26.Gifts for public benefit

      10. 27.Maintenance funds for historic buildings, etc.

      11. 28.Employee trusts

      12. 29.Loans-modifications of exemptions

    2. CHAPTER II Conditional Exemption

      1. 30.Conditionally exempt transfers

      2. 31.Designation and undertakings

      3. 32.Chargeable events

      4. 33.Amount of charge under section 32

      5. 34.Reinstatement of transferor's cumulative total

      6. 35.Conditional exemption on death before 7th April 1976

    3. CHAPTER III Allocation of Exemptions

      1. 36.Preliminary

      2. 37.Abatement of gifts

      3. 38.Attribution of value to specific gifts

      4. 39.Attribution of value to residuary gifts

      5. 40.Gifts made separately out of different funds

      6. 41.Burden of tax

      7. 42.Supplementary

  4. PART III Settled Property

    1. CHAPTER I Preliminary

      1. 43.Settlement and related expressions

      2. 44.Settlor

      3. 45.Trustee

      4. 46.Interest in possession: Scotland

      5. 47.Reversionary interest

      6. 48.Excluded property

    2. CHAPTER II Interests in Possession and Reversionary Interests

      1. 49.Treatment of interests in possession

      2. 50.Interests in part, etc.

      3. 51.Disposal of interest in possession

      4. 52.Charge on termination of interest in possession

      5. 53.Exceptions from charge under section 52

      6. 54.Exceptions from charge on death

      7. 55.Reversionary interest acquired by beneficiary

      8. 56.Exclusion of certain exemptions

      9. 57.Application of certain exemptions

    3. CHAPTER III Settlements Without Interests in Possession

      1. Interpretation

        1. 58.Relevant property

        2. 59.Qualifying interest in possession

        3. 60.Commencement of settlement

        4. 61.Ten-year anniversary

        5. 62.Related settlements

        6. 63.Minor interpretative provisions

      2. Principal charge to tax

        1. 64.Charge at ten-year anniversary

        2. 65.Charge at other times

      3. Rates of principal charge

        1. 66.Rate of ten-yearly charge

        2. 67.Added property, etc.

        3. 68.Rate before first ten-year anniversary

        4. 69.Rate between ten-year anniversaries

      4. Special cases—charges to tax

        1. 70.Property leaving temporary charitable trusts

        2. 71.Accumulation and maintenance trusts

        3. 72.Property leaving employee trusts and newspaper trusts

        4. 73.Pre-1978 protective trusts

        5. 74.Pre-1981 trusts for disabled persons

      5. Special cases—reliefs

        1. 75.Property becoming subject to employee trusts

        2. 76.Property becoming held for charitable purposes, etc.

      6. Works of art, historic buildings, etc.

        1. 77.Maintenance funds for historic buildings, etc.

        2. 78.Conditionally exempt occasions

        3. 79.Exemption from ten-yearly charge

      7. Miscellaneous

        1. 80.Initial interest of settlor or spouse

        2. 81.Property moving between settlements

        3. 82.Excluded property

        4. 83.Property becoming settled on a death

        5. 84.Income applied for charitable purposes

        6. 85.Credit for annual charges under Finance Act 1975

    4. CHAPTER IV Miscellaneous

      1. 86.Trusts for benefit of employees

      2. 87.Newspaper trusts

      3. 88.Protective trusts

      4. 89.Trusts for disabled persons

      5. 90.Trustees' annuities, etc.

      6. 91.Administration period

      7. 92.Survivorship clauses

      8. 93.Disclaimers

  5. PART IV Close Companies

    1. Transfers by close companies

      1. 94.Charge on participators

      2. 95.Participator in two companies

      3. 96.Preference shares disregarded

      4. 97.Transfers within group, etc.

    2. Alterations of capital, etc.

      1. 98.Effect of alterations of capital, etc.

    3. Settled property

      1. 99.Transfers where participators are trustees

      2. 100.Alterations of capital, etc. where participators are trustees

      3. 101.Companies' interests in settled property

    4. General

      1. 102.Interpretation

  6. PART V Miscellaneous Reliefs

    1. CHAPTER I Business Property

      1. 103.Preliminary

      2. 104.The relief

      3. 105.Relevant business property

      4. 106.Minimum period of ownership

      5. 107.Replacements

      6. 108.Successions

      7. 109.Successive transfers

      8. 110.Value of business

      9. 111.Value of certain shares and securities

      10. 112.Exclusion of value of excepted assets

      11. 113.Contracts for sale

      12. 114.Avoidance of double relief

    2. CHAPTER II Agricultural Property

      1. 115.Preliminary

      2. 116.The relief

      3. 117.Minimum period of occupation or ownership

      4. 118.Replacements

      5. 119.Occupation by company or partnership

      6. 120.Successions

      7. 121.Successive transfers

      8. 122.Agricultural property of companies

      9. 123.Provisions supplementary to section 122

      10. 124.Contracts for sale

    3. CHAPTER III Woodlands

      1. 125.The relief

      2. 126.Charge to tax on disposal of trees or underwood

      3. 127.Amount subject to charge

      4. 128.Rate of charge

      5. 129.Credit for tax charged

      6. 130.Interpretation

    4. CHAPTER IV Transfers Within Three Years Before Death

      1. 131.The relief

      2. 132.Wasting assets

      3. 133.Shares-capital receipts

      4. 134.Payments of calls

      5. 135.Reorganisation of share capital, etc.

      6. 136.Transactions of close companies

      7. 137.Interests in land

      8. 138.Leases

      9. 139.Other property

      10. 140.Interpretation

    5. CHAPTER V Miscellaneous

      1. Successive charges

        1. 141.Two or more transfers within five years

      2. Changes in distribution of deceased's estate, etc.

        1. 142.Alteration of dispositions taking effect on death

        2. 143.Compliance with testator's request

        3. 144.Distribution etc. from property settled by will

        4. 145.Redemption of surviving spouse's life interest

        5. 146.Inheritance (Provision for Family and Dependants) Act 1975

        6. 147.Scotland: legitim

      3. Mutual and voidable transfers

        1. 148.Mutual transfers: exemption for donee's gift

        2. 149.Mutual transfers: relief for donor's gift

        3. 150.Voidable transfers

      4. Pension schemes, etc.

        1. 151.Treatment of pension rights, etc.

        2. 152.Cash options

        3. 153.Overseas pensions

      5. Armed forces

        1. 154.Death on active service, etc.

        2. 155.Visiting forces, etc.

      6. Apsley House and Chevening Estate

        1. 156.Apsley House and Chevening Estate

      7. Non-residents' bank accounts

        1. 157.Non-residents' bank accounts

      8. Double taxation relief

        1. 158.Double taxation conventions

        2. 159.Unilateral relief

  7. PART VI Valuation

    1. CHAPTER I General

      1. 160.Market value

      2. 161.Related property

      3. 162.Liabilities

      4. 163.Restriction on freedom to dispose

      5. 164.Transferor's expenses

      6. 165.Tax on capital gains

      7. 166.Creditors' rights

      8. 167.Life policies, etc.

      9. 168.Unquoted shares and securities

      10. 169.Farm cottages

      11. 170.Leases for life, etc.

    2. CHAPTER II Estate on Death

      1. 171.Changes occurring on death

      2. 172.Funeral expenses

      3. 173.Expenses incurred abroad

      4. 174.Income tax and unpaid capital transfer tax

      5. 175.Liability to make future payments, etc.

      6. 176.Related property etc-sales

      7. 177.Scottish agricultural leases

    3. CHAPTER III Sale of Shares etc. from Deceased's Estate

      1. 178.Preliminary

      2. 179.The relief

      3. 180.Effect of purchases

      4. 181.Capital receipts

      5. 182.Payment of calls

      6. 183.Changes in holdings

      7. 184.Exchanges

      8. 185.Acquisition of like investments

      9. 186.Value of part of a fund

      10. 187.Attribution of values to specific investments

      11. 188.Limitation of loss on sale

      12. 189.Date of sale or purchase

    4. CHAPTER IV Sale of Land from Deceased's Estate

      1. 190.Preliminary

      2. 191.The relief

      3. 192.Effect of purchases

      4. 193.Changes between death and sale

      5. 194.Leases

      6. 195.Valuation by reference to other interests

      7. 196.Sales to beneficiaries etc. and exchanges

      8. 197.Compulsory acquisition more than three years after death

      9. 198.Date of sale or purchase

  8. PART VII Liability

    1. General rules

      1. 199.Dispositions by transferor

      2. 200.Transfer on death

      3. 201.Settled property

      4. 202.Close companies

      5. 203.Liability of spouse

      6. 204.Limitation of liability

      7. 205.More than one person liable

    2. Special cases

      1. 206.Gifts to political parties

      2. 207.Conditional exemption, etc.

      3. 208.Woodlands

      4. 209.Succession in Scotland

      5. 210.Pension rights, etc.

    3. Burden of tax, etc.

      1. 211.Burden of tax on death

      2. 212.Powers to raise tax

      3. 213.Refund by instalments

      4. 214.Certificates of tax paid

  9. PART VIII Administration and Collection

    1. Management

      1. 215.General

    2. Accounts and information

      1. 216.Delivery of accounts

      2. 217.Defective accounts

      3. 218.Non-resident trustees

      4. 219.Power to require information

      5. 220.Inspection of property

    3. Determinations and appeals

      1. 221.Notices of determination

      2. 222.Appeals against determinations

      3. 223.Appeals out of time

      4. 224.Procedure before Special Commissioners

      5. 225.Statement of case for opinion of High Court

    4. Payment

      1. 226.Payment: general rules

      2. 227.Payment by instalments-land, shares and businesses

      3. 228.Shares etc. within section 227

      4. 229.Payment by instalments-woodlands

      5. 230.Acceptance of property in satisfaction of tax

      6. 231.Powers to transfer property in satisfaction of tax

      7. 232.Administration actions

    5. Interest

      1. 233.Interest on unpaid tax

      2. 234.Interest on instalments

      3. 235.Interest on overpaid tax

      4. 236.Special cases

    6. Inland Revenue charge for unpaid tax

      1. 237.Imposition of charge

      2. 238.Effect of purchases

    7. Certificates of discharge

      1. 239.Certificates of discharge

    8. Adjustments

      1. 240.Underpayments

      2. 241.Overpayments

    9. Recovery of tax

      1. 242.Recovery of tax

      2. 243.Scotland: recovery of tax in sheriff court

      3. 244.Right to address court

    10. Penalties

      1. 245.Failure to provide information

      2. 246.Failure to appear before Special Commissioners, etc.

      3. 247.Provision of incorrect information

      4. 248.Failure to remedy errors

      5. 249.Recovery of penalties

      6. 250.Time limit for recovery

      7. 251.Summary award

      8. 252.Effect of award by Special Commissioners

      9. 253.Mitigation of penalties

    11. Miscellaneous

      1. 254.Evidence

      2. 255.Determination of questions on previous view of law

      3. 256.Regulations about accounts, etc.

      4. 257.Form etc. of accounts

      5. 258.Service of documents

      6. 259.Inspection of records

      7. 260.Inland Revenue Regulation Act 1890

      8. 261.Scotland: inventories

  10. PART IX Miscellaneous and Supplementary

    1. Miscellaneous

      1. 262.Tax chargeable in certain cases of future payments, etc.

      2. 263.Annuity purchased in conjunction with life policy

      3. 264.Transfers reported late

      4. 265.Chargeable transfers affecting more than one property

      5. 266.More than one chargeable transfer on one day

      6. 267.Persons treated as domiciled in United Kingdom

    2. Interpretation

      1. 268.Associated operations

      2. 269.Control of company

      3. 270.Connected persons

      4. 271.Property of corporations sole

      5. 272.General interpretation

    3. Supplementary

      1. 273.Transition from estate duty

      2. 274.Commencement

      3. 275.Continuity, and construction of references to old and new law

      4. 276.Consequential amendments

      5. 277.Repeals

      6. 278.Short title

    1. SCHEDULE 1

      Rates of Tax

    2. SCHEDULE 2

      Provisions Applying on Reduction of Tax

      1. Interpretation

        1. 1.In this Schedule— (a) references to a reduction are to...

      2. Death within three years of chargeable transfer

        1. 2.Where a person who has made a chargeable transfer before...

      3. Settlement without interest in possession

        1. 3.Where tax is chargeable under section 65 of this Act...

      4. Disposal of trees etc. following exemption on death

        1. 4.Where the value of any trees or underwood has been...

      5. Conditionally exempt transfers

        1. 5.Where tax is chargeable under section 32 of this Act...

      6. Maintenance funds for historic buildings

        1. 6.Where tax is chargeable under paragraph 8 of Schedule 4...

      7. Mutual transfers

        1. 7.Any question whether any, and if so what, tax is...

    3. SCHEDULE 3

      Gifts for National Purposes, Etc

    4. SCHEDULE 4

      Maintenance Funds for Historic Buildings, Etc

      1. PART I Treasury Directions

        1. Giving of directions

          1. 1.(1) If the conditions mentioned in paragraph 2(1) below are...

        2. Conditions

          1. 2.(1) The conditions referred to in paragraph 1 above are—...

          2. 3.(1) The requirements referred to in paragraph 2(1)(a)(i) above are...

          3. 4.(1) Paragraphs (a) and (b) of paragraph 3(1) above do...

        3. Withdrawal

          1. 5.If in the Treasury's opinion the facts concerning any property...

        4. Information

          1. 6.Where a direction under paragraph 1 above has effect in...

        5. Enforcement of trusts

          1. 7.Where a direction under paragraph 1 above has effect in...

      2. PART II Property Leaving Maintenance Funds

        1. Charge to tax

          1. 8.(1) This paragraph applies to settled property which is held...

        2. Exceptions from charge

          1. 9.(1) Tax shall not be charged under paragraph 8 above...

          2. 10.(1) Tax shall not be charged under paragraph 8 above...

        3. Rates of charge

          1. 11.(1) This paragraph applies where tax is chargeable under paragraph...

          2. 12.(1) This paragraph applies where tax is chargeable under paragraph...

          3. 13.(1) The first rate is the aggregate of the following...

          4. 14.(1) If the settlor is alive, the second rate is...

          5. 15.Where property is, by virtue of paragraph 1(3) above, treated...

      3. PART III Property Becoming Comprised in Maintenance Funds

        1. 16.(1) Tax shall not be charged under section 65 of...

        2. 17.(1) Tax shall not be charged under section 65 of...

        3. 18.In paragraphs 16(2) and 17(4) above the references to the...

    5. SCHEDULE 5

      Conditional Exemption: Deaths Before 7th April 1976

      1. Charge on failure of condition of exemption—objects

        1. 1.(1) Where, under section 31 of the Finance Act 1975,...

        2. 2.(1) The following provisions of this paragraph shall have effect...

      2. Charge on failure of condition of exemption—buildings etc.

        1. 3.(1) Where, under subsection (2) of section 34 of the...

        2. 4.The tax chargeable under paragraph 3 above with respect to...

      3. Further undertaking on disposal

        1. 5.(1) The further undertaking referred to in paragraph 1 above...

      4. Requirements of sale

        1. 6.A sale complies with this paragraph if—

    6. SCHEDULE 6

      Transition from Estate Duty

      1. General

        1. 1.References in any enactment, in any instrument made under any...

      2. Surviving spouse or former spouse

        1. 2.In determining for the purposes of this Act the value...

      3. Sales and mortgages of reversionary interests

        1. 3.(1) Where a reversionary interest in settled property was before...

      4. Objects of national etc. interest left out of account on death

        1. 4.(1) In its application to a sale which does not...

    7. SCHEDULE 7

      Commencement: Supplementary Rules

      1. 1.In this Schedule " the repealed enactments " means the...

      2. 2.Sections 126 to 130 of this Act shall have effect...

      3. 3.Where section 146 of this Act has effect in relation...

      4. 4.Section 147 of this Act, so far as it relates...

      5. 5.Sections 148 and 149 of this Act shall have effect...

      6. 6.Section 150 of this Act shall have effect (to the...

      7. 7.Section 203 of this Act shall have effect (to the...

      8. 8.Section 218 of this Act, and section 245 so far...

      9. 9.Section 219 of this Act, and section 245 so far...

      10. 10.Section 220 of this Act shall come into force on...

      11. 11.Any order made under section 233 of this Act shall...

      12. 12.Where payments are made or assets transferred after the end...

      13. 13.Section 264 of this Act shall have effect (to the...

      14. 14.This Act shall not have effect in a case which...

    8. SCHEDULE 8

      Consequential Amendments

      1. The Land Registration Act 1925

        1. 1.In section 73 of the Land Registration Act 1925 for...

      2. The Crown Proceedings Act 1947

        1. 2.In section 14(1)(b) of the Crown Proceedings Act 1947, for...

      3. The Land Charges Act 1972

        1. 3.(1) In section 2 of the Land Charges Act 1972—...

      4. The Finance Act 1975

        1. 4.In section 49(4) of the Finance Act 1975 after the...

      5. The Development Land Tax Act 1976

        1. 5.In section 10(5)(a) of the Development Land Tax Act 1976...

        2. 6.(1) Section 34 of the Development Land Tax Act 1976...

        3. 7.(1) Schedule 6 to the Development Land Tax Act 1976...

      6. The Finance Act 197

        1. 8.In section 38 of the Finance Act 1977—

      7. The Capital Gains Tax Act 1979

        1. 9.In subsections (1)(b) and (3)(a) of section 146 of the...

        2. 10.(1) Section 147 of the Capital Gains Tax Act 1979...

        3. 11.(1) Section 149 of the Capital Gains Tax Act 1979...

        4. 12.In paragraphs 1 and 3 of Schedule 4 to the...

      8. The National Heritage Act J 980

        1. 13.In section 8(1) of the National Heritage Act 1980 after...

        2. 14.In section 12(3) of the National Heritage Act 1980 for...

        3. 15.In section 13(3) of the National Heritage Act 1980 after...

        4. 16.In section 14(1) of the National Heritage Act 1980, for...

      9. The Finance Act 1980

        1. 17.(1) Section 52 of the Finance Act 1980 shall be...

        2. 18.(1) Section 53 of the Finance Act 1980 shall be...

        3. 19.In section 98 of the Finance Act 1980 for the...

      10. The Supreme Court Act 1981

        1. 20.In section 109 of the Supreme Court Act 1981—

      11. The Finance Act 1982

        1. 21.In section 61(1) of the Finance Act 1982—

        2. 22.In section 62 of the Finance Act 1982 for the...

      12. The Finance (No. 2) Act 1983

        1. 23.In section 7(8) of the Finance (No. 2) Act 1983...

      13. The Value Added Tax Act 1983

        1. 24.In Group II of Schedule 6 to the Value Added...

      14. The Land Registration Act (Northern Ireland) 1970

        1. 25.In paragraph 7 of Part II of Schedule 6 to...

    9. SCHEDULE 9

      Repeals

    10. TABLE OF DERIVATIONS

Back to top

Options/Help

Print Options

You have chosen to open The Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open The Whole Act as a PDF

The Whole Act you have selected contains over 200 provisions and might take some time to download.

Would you like to continue?

You have chosen to open the Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open the Whole Act without Schedules

The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

Close

Legislation is available in different versions:

Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.

Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.

Close

Opening Options

Different options to open legislation in order to view more content on screen at once

Close

More Resources

Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • correction slips
  • links to related legislation and further information resources
Close

More Resources

Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • correction slips

Click 'View More' or select 'More Resources' tab for additional information including:

  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • links to related legislation and further information resources