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HMRC internal manual

Inheritance Tax Manual

From
HM Revenue & Customs
Updated
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Lifetime transfers: excepted transfers

An account is not required for an excepted transfer, unless the Board requests one by notice in writing, SI 1981 No 1440 .

An excepted transfer is a chargeable transfer which is a disposition by an individual (but not anything which is treated as a disposition for IHT purposes, such as an omission to exercise a right) where

  • the value transferred together with the value transferred by any previous chargeable transfers during the same tax year does not exceed £10,000, and
  • the value transferred together with the values of all previous chargeable transfers during the 10 years preceding it does not exceed £40,000.

If a person who has not delivered an account in reliance of the regulations subsequently discovers that the transfer is not ‘excepted’, they must deliver an account within 6 months of the discovery.