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HMRC internal manual

Inheritance Tax Manual

Exclusions from exemption: introduction

Charity exemption is limited by several anti-avoidance provisions.

These are in two groups

  • IHTA84/S23 (2) to IHTA84/S23 (5) which apply generally (except to loans (IHTM11133) to charities), and
  • IHTA84/S56 which applies to gifts or transactions involving non-relevant settled property (IHTM11161).

A gift which is caught by these anti-avoidance provisions is not exempt under IHTA84/S23 though the beneficiary is a qualifying charity.

Although overall guidance is given at IHTM11111 and IHTM11112 more detailed guidance on the provisions of IHTA84/S23 (2) to IHTA84/S23 (5) is given in this section of the manual.