16860 Amount of IHT charged where conditional exemption lifted
In relation to conditional exemption for works of art, historic buildings, etc. (see ¶16850), breach of an ‘undertaking’ (see ¶16855) is treated as a chargeable event, as are the death of the person beneficially entitled to the property and disposal of the property. If the property is sold or given to any of the bodies listed at ¶16560, or given to HMRC in satisfaction of the tax due, it will not be treated as a chargeable event.
A death or disposal other than by sale will also not be a chargeable event if similar undertakings are given. Undertakings given after 30 July 1998 must comply with the changed requirements outlined at ¶16855.