Estate Duty surviving spouse exemption: summary
This exemption is a carry-over from the Estate Duty regime. With certain provisos, it affords relief on the termination of the surviving spouse’s limited interest in possession (IIP) (IHTM16000) in settled property. Although this relief is obsolete, it will be many years before it becomes totally irrelevant. You therefore need to be aware of the provisions in some detail. The relief may apply on the death of the surviving spouse, (IHTM04343) or when the interest of the surviving spouse terminates (IHTM04344) during their lifetime.
If you think that the relief may be due, but the taxpayer has not deducted it, see IHTM04346.