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HMRC internal manual

Inheritance Tax Manual

Groups of exempt transfers: lifetime and death transfers

This group consists of

  • transfers between spouses or civil partners (IHTM11031) and (IHTM11032)
  • transfers to charities and registered sports clubs (IHTM11101)
  • transfers to political parties (IHTM11191)
  • transfers of land to registered housing associations (IHTM11211) or registered social landlords
  • transfers for national purposes (IHTM11221)

The exemptions in the group have the following features in common

  • they apply to deemed transfers (IHTM04025) as well as actual transfers (IHTM04024). So they apply to transfers on death and on the ending of a qualifying interest in possession in settled property as well as to actual transfers during lifetime
  • where the transfer is only partly exempt (IHTM26001), the extent to which it is exempt is determined by IHTA84/S36 to IHTA84/S42
  • the application of the exemptions is restricted by broadly similar provisions
  • to the extent that a gift is an exempt transfer under any of these sections, the gift with reservation (IHTM04071) provisions do not apply - FA86/S102 (5) and
  • there is a general formula (IHTM11013) for working out how much exemption is due.