LBTT2013 - Buyer bearing inheritance tax liability

LBTT guidance on determining the chargeable consideration in a land transaction where the buyer bears an inheritance tax liability.

Where there is a land transaction that is either:

  • a transfer of value within section 3 of the Inheritance Tax Act 1984;  or
  • a disposition, effected by will or under the law of intestacy, of a chargeable interest comprised in the estate of a person immediately on the person’s death; and
  • the buyer is or becomes liable to pay, agrees to pay or does in fact pay any inheritance tax due in respect of the transfer or disposition,

then the buyer’s liability, agreement or payment does not count as chargeable consideration for the transaction.

LBTT(S)A 2013 schedule 2 paragraph 15.

Ref ID: 
LBTT2013
Archive Date: 
8 March 2015
Last updated: 
8 March 2015
CAPTCHA
Security check. Please answer this simple maths problem. E.g. for 1+3, enter 4
1 + 3 =
Solve this simple math problem and enter the result. E.g. for 1+3, enter 4.