Statutory Instruments
2003 No. 841
INHERITANCE TAX
The Inheritance Tax (Indexation) Order 2003
Made
27 March 2003
The Treasury, in pursuance of section 8(4) of the Inheritance Act 1984( 1 ) hereby make the following Order:
1. This Order may be cited as the Inheritance Tax (Indexation) Order 2003.
2. The amounts which, unless Parliament otherwise determines, will be treated by virtue of section 8 of the Inheritance Tax Act 1984 as specified in the Table in Schedule 1 to that Act( 2 ) in relation to chargeable transfers on or after 6th April 2003 are as follows—
TABLE OF RATES OF TAX
| Portion of value | Rate of Tax | |
|---|---|---|
| Lower Limit | Upper Limit | Per cent. |
| £ | £ | |
| 0 | 255,000 | NIL |
| 255,000 | – | 40 |
Jim Fitzpatrick
John Heppell
Two of the Lords Commissioners of Her Majesty’s Treasury
27 th March 2003
1984 c. 51 . Section 8 was amended by section 101(3) of, and paragraph 3 of Schedule 19 to, the Finance Act 1986 (c. 41) (subject to Part II of Schedule 19 to that Act), section 136(3) of, and Part X of Schedule 14 to, the Finance Act 1988 (c. 39) and section 197 of the Finance Act 1993 (c. 34) , and by paragraph 21 of Schedule 2 to the Transfer of Functions (Registration and Statistics) Order 1996 (S.I. 1996/273 ). By virtue of section 100(1) and (2) of the Finance Act 1986, on and after 25 th July 1986 the Capital Transfer Tax Act 1984 may be cited as the Inheritance Tax Act 1984, and any reference in that Act to capital transfer tax is to have effect as a reference to inheritance tax, except where the reference relates to a liability arising before 25 th July 1986.
The Table in Schedule 1 was substituted by section 118(1) of the Finance Act 2002 (c. 23) in relation to chargeable transfers made on or after 6 th April 2002. The Table was substituted by S.I. 2001/639 in relation to chargeable transfers made in the year beginning 6 th April 2001, by S.I. 2000/803 in relation to chargeable transfers made in the year beginning 6 th April 2000, by S.I. 1999/596 in relation to chargeable transfers made in the year beginning 6 th April 1999, by S.I. 1998/756 in relation to chargeable transfers made in the year beginning 6 th April 1998, by section 93(1) of the Finance Act 1997 in relation to chargeable transfers made in the year beginning 6 th April 1997, by section 183(1) of the Finance Act 1996 in relation to chargeable transfers made in the year beginning 6 th April 1996 and by S.I. 1994/3011 in relation to chargeable transfers made in the year beginning 6 th April 1995.