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HMRC internal manual

Inheritance Tax Manual

HM Revenue & Customs
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General outline: quantifying the exemption

When considering the extent of any exemption you should look out for situations where

  • lifetime transfers (IHTM11013) are involved.
  • the transfer is only partly exempt (IHTM26001)
  • the deceased is domiciled outside the UK (IHTM11013)
  • there is a claim (IHTM11025) against a deceased person’s estate which was settled by an exempt beneficiary (IHTM11026), out of their own resources
  • the exemption has a value limit. Inheritance Tax has no value limit. However, until 1983 there was a value limit on the corresponding exemption for Capital Transfer Tax. The limit was removed by F(No.2)A83. If you need to consider a transfer made before 1983 details of the limits can be found in The Taxes Acts ,1982 edition, page ix. (This content has been withheld because of exemptions in the Freedom of Information Act 2000)