12 Disclaimer

Summary

This section provides that benefits which are disclaimed are ignored for tax purposes. It also provides that the disclaimer is not regarded as a disposition and that any consideration received by the person who made the disclaimer is deemed to be a gift or inheritance, as the case may be, taken from the person who paid the consideration.

Details

(1) Inheritance tax is not payable where a benefit under a will or intestacy or an entitlement to an interest in settled property is disclaimed. This also applies where a claim under a purported will in respect of which a grant of probate or letters of administration was not issued or under an alleged intestacy in respect of which such grant was issued is waived or a right under Part IX of the Succession Act 1965, which deals with the legal right of the spouse of a person who makes a will and provision for his/her children, or an analogous right under the law of another country is renounced, disclaimed, elected against or lapses. In the case of an entitlement to an interest in settled property, neither gift tax nor inheritance tax is payable where the entitlement to the interest is disclaimed.

(2) The disclaimer, waiver, etc. is not a disposition by the person disclaiming the benefit.

(3) Any consideration received for giving up the benefit disclaimed is a gift or inheritance from the disponer who provided that benefit.

Relevant Date: Finance Act 2015