Capital Acquisitions Tax Consolidation Act 2003 section 56

Payment of inheritance tax by transfer of securities

Section 56 allows inheritance tax to be paid by transferring certain government securities to the Minister for Finance, extending rules originally designed for death duties.

• Government securities issued with a condition that they could be used to pay death duties may also be used to pay inheritance tax, under the same rules and regulations.
• The securities must have formed part of the deceased's property at the date of death and for at least 3 months before that date (or from the date of original subscription).
• The section applies only to mainstream inheritance tax — it does not apply to the 6% or 1% charges imposed on certain discretionary trusts.
• The only stock currently qualifying under this section is 6.5% Exchequer Stock 2000/2005.