Introduction Details of the Section
2.Subsection (2) amends section 8(1) of the Inheritance Tax Act (IHTA) 1984 so that the increase in the CPI from one September to the next is used to calculate the increase in the NRB for the following year.
3.Subsection (3) amends section 8(2) IHTA 1984 replacing references to “retail prices index” with “consumer prices index”.
4.Subsection (4) replaces the definition of “retail prices index” in section 8(3) IHTA 1984 with a definition of “consumer prices index”.
5.Subsection (5) provides that automatic indexation of the NRB in line with the CPI takes effect from the calculation of the NRB for 2015-16. This will apply for chargeable transfers made on or after 6 April 2015 and will also be applied, where appropriate, under paragraph 1A of Schedule 2 to IHTA 1984 for potentially exempt transfers made before that date which fail on or after 6 April 2015.