ihta84/s8.- Indexation of rate bands

8.-(1) If the retail prices index for the month of [September in 1993¹] or any later year is higher than it was for the previous [September²], then, unless Parliament otherwise determines, section 7 above and Schedule 1 to this Act shall apply to chargeable transfers made on or after 6th April in the following year with the substitution of [a new Table for the Table³] applying (whether by virtue of this section or otherwise) to earlier chargeable transfers.

[(1A) For the purpose only of the application of Schedule 1 to this Act in accordance with subsection (1) above, a potentially exempt transfer which proves to be a chargeable transfer shall be assumed to be made on the date of the transferor's death.⁴]

[1982 s.91(2).]

(2) The new [Table ⁵ ] shall differ from the [Table⁵] it replaces in that for each of the amounts specified in the first and second columns there shall be substituted amounts arrived at by increasing the previous amounts by the same percentage as the percentage increase in the retail prices index and, if the result is not a multiple of £1,000, rounding it up to the nearest amount which is such a multiple.

[1982 s.91(3).]

(3) The references in this section to the retail prices index are references to the general index of retail prices (for all items) published by the [Office for National Statistics ⁶ ]; and if that index is not published for a month of September⁷ those references shall be construed as references to any substituted index or index figures published by [that Office⁶].

[1982 s.91(4).]

(4) The Treasury shall before 6th April 1994⁸ and each subsequent 6th April make an order specifying the amounts which by virtue of this section will be treated, in relation to chargeable transfers on or after that date, as specified in the [Table⁹] in the Schedule 1 to this Act; and any such order shall be made by statutory instrument.

1 1993 s.197(1)(a), with effect from 6 April 1994. Originally December in 1984

2 1993 s.197(1)(a), with effect from 6 April 1994. Originally "previous December".

3 1986 Sch.19, para.3(1), with effect from 18 March 1986. Originally "new Tables for the Tables".

4 1986 Sch.19, para.3(2), with effect from 18 March 1986; Repealed by 1988, s.136(3) and Sch.14, Part X with effect from 15 March 1988.

5 1986 Sch.19, para.3(3), with effect from 18 March 1986. Originally "Tables".

6 Transfer of Functions (Registration and Statistics Order 1998 (S.I. 1996 No. 273), Sch.2, para.21. Previously "Central Statistical Office of the Chancellor of the Exchequer" inserted by Transfer of Functions (Economic Statistics) Order 1989 (S.I. 1989 No. 992), Sch.2, para.5 and "that Department". Originally "Department of Employment".

7 1993 s.197(1)(b), with effect from 6 April 1994. Originally "September".

8 1993 s.197(1)(c), with effect from 6 April 1994. Originally "1985".

9 1986 Sch.19, para.3(4), with effect from 18 March 1986. Originally "Tables".