IHTA84/S15 provides for relief when a person (
IHTM04052) waives any dividend on
shares in a company. If the waiver is made within twelve months
before any right to the dividend has accrued, under IHTA84/S15, the
waiver does not of itself (see below) constitute a transfer of
IHTM04024) Use of the word person
enables the section to apply to waivers by companies as well as by
For British companies, it is considered that a right to
and you should establish the time limit accordingly.
For dividends of foreign companies, initially you should assume that the rights to dividends accrue similarly. If this view is challenged, you should obtain full details of the company’s constitution or articles and refer to TG when the information is received.
IHTA84/S15 applies only to the waiver of a dividend on shares in
a company. It does not apply to the waiver or release of any other
form of income, such as rent or interest on any form of debt,
including debentures and loans.
IHTA84/S15 provides only that a person does not make a transfer of value ‘by reason of the waiver’. You need to be careful if the situation you are concerned with
In such a situation, you should obtain the facts and, when you have received them, refer the case to TG. Do not comment on the application of IHTA84/S15 before making the reference to TG.