»Ê¹ÚÌåÓýapp

With one exception (mentioned below) charity exemption and the exemptions at IHTA84/S24 to IHTA84/S27 do not apply to any property by reason of IHTA84/S56 (3)(b) if:

• immediately before becoming the property of the ‘exempt bodyâ€� it was comprised in a settlement, and
• on or after 12 April 1978
• an interest in the settlement is or has been acquired for a consideration in money or money’s worth by the same organisation or another ‘exempt bodyâ€�

‘Exempt body� is defined by IHTA84/S56 (4) as a charity (IHTM11112), political party (IHTM11191) or other body within IHTA84/S23 to IHTA84/S26 or the trustees of a maintenance fund for historical buildings (IHTM11250) and similar property.

»Ê¹ÚÌåÓýapp exception (referred to above) is that IHTA84/S56 (3) (b) does not apply if the purchase was from an exempt body within IHTA84/S23 to IHTA84/S25. However this exception only applies to purchases from exempt bodies within IHTA84/S23 to IHTA84/S25, not from the full range of exempt bodies as defined in IHTA84/S56 (4).

So, where the exempt body has purchased a reversionary interest (IHTM16231), exemption will only be due if the reversion was bought from a body within IHTA84/S23 to IHTA84/S25.

Note

‘Exempt bodyâ€� used to include certain private bodies which preserve national heritage property for public benefit. »Ê¹ÚÌåÓýapp relevant provisions were repealed in 1998. It is possible, if unlikely, that before 1998 one of these bodies purchased a reversion which would not fall in until later. Any such case should be referred to Technical for guidance before allowing exemption.