Inheritance Tax Act 1984 section 33

Amount of charge under section 32

Section 33 sets out how to calculate the amount of inheritance tax that becomes payable when a chargeable event occurs in relation to conditionally exempt property (such as heritage assets of national, scientific, historic or artistic interest).

• Tax is charged on the value of the property at the date of the chargeable event, using rates determined by whether the person who made the original conditionally exempt transfer is alive or dead at that time
• Where the property is sold at arm's length without any intention of conferring a gratuitous benefit, the sale proceeds are taken as the property's value for the purpose of the charge
• If the original conditional exemption applied to only part of the property, the taxable amount is proportionately reduced
• A credit mechanism prevents double taxation: tax already paid on a chargeable or potentially exempt transfer attributable to the same property is set against the tax arising on the chargeable event