Dispositions not intended to confer bounty: application of the relief
This page describes how a disposition may be excluded from the Inheritance Tax (IHT) charge under IHTA84/S10.
There must be a disposition – see IHTM04023.
Irrespective of the type of asset disposed of, was the disposition intended, or made in a transaction intended, to confer bounty (IHTM04165)?
If the transferor intended to make a gift or confer gratuitous benefit on another person, the provisions of IHTA84/S10 cannot apply.
If the disposition was not intended to confer bounty, was the transaction made at arms-length between two people not connected with each other, or as might be expected to be made at arms-length between two people not connected with each other (IHTM04166)?
If yes, the provisions of IHTA84/S10 apply and the disposition is not a transfer of value (IHTM04024).