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HMRC internal manual

Enquiry Manual

HM Revenue & Customs
, see all updates

Determine who can support the enquiry: Specialist Personal Tax: Inheritance Tax: what is exempt from inheritance tax

When considering whether information may be of value to Inheritance Tax (IHT) you should bear in mind that the following are exempt from IHT

  • property passing to a spouse or civil partner
  • transfers to charities
  • lifetime transfers between individuals except those made within 7 years of a person’s death or where the person making the transfer continued to enjoy or benefit from the gifted property.

There are also reliefs for agricultural and business property that often mean IHT is not payable on a transfer that would otherwise be chargeable.

A non-domiciled person will generally only be liable to IHT on their UK estate but there are special ‘deeming’ rules that catch those who are non-domiciled in law but who are long-term residents in this country and for those that become non-domiciled in the three years prior to a chargeable event.

Further more detailed guidance on IHT can be found in the IHT manual.