Dispositions not intended to confer bounty: first condition - gift not intended
The first condition in IHTA84/S10 is that the disposition (IHTM04164) was not intended, and was not made in a transaction intended, to confer any gratuitous benefit on any person (IHTM04052). It is necessary for the person claiming that a disposition is within IHTA84/S10 to show that the transferor
- sought to obtain the full open market price under the transaction, and
- had no donative intent.
Angela puts Blackacre for sale on the open market. Its value is considered to be £100,000. Barry, a stranger, starts negotiations to buy. He discovers that Angela needs a quick sale for personal reasons, e.g. because she is emigrating shortly. So Barry offers only £82,000, but in cash with an undertaking to complete the purchase very soon. Angela accepts because of her own circumstances. There is no gratuitous intent.
Dispositions made on divorce or dissolution of a civil partnership (IHTM11032) for the benefit of a former spouse or civil partner, as a result of arm’s length negotiations, will not normally give rise to a transfer of value in view of IHTA84/S10. Alternatively, IHTA84/S11(a) (IHTM04173) may apply. There is no transfer of value where the disposition is made as a result of a Court Order (IHTM11032).