The charitable giving condition did not apply so as to reduce the rate of inheritance tax payable by the estate from 40% to 36%, and a property included in the deceased’s estate did not qualify for business property relief. 

Summary 

The charitable giving condition (in IHTA 1984, Sch 1A) did not apply so as to reduce the rate of inheritance tax (IHT) payable by the estate from 40% to 36%, and a property in the deceased’s estate did not qualify for business property relief (BPR). 

Background 

An individual (SM) died on 8 April 2014. His wife (HM) died on 1 October 2015. SM’s will provide for certain pecuniary legacies, with the residue of SM’s estate to be held on trust. The main assets of the will trust included a leasehold flat in London. Four deeds of appointment were executed between July 2014 and April 2015. 

On HM’s death on 1