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HMRC internal manual

Inheritance Tax Manual

Gifts to political parties: quantifying the exemption

When quantifying the exemption you should bear in mind that:

  • the exemption has no value limit because of the combined effect of IHTA84/S24 (1)(b) and FA88/S137. For transfers of value made before 15 March 1988, the exemption was limited to £100,000 if the transfer was made on, or within one year of the death of the transferor. The limit did not apply to loans because of IHTA84/S29 (5).
  • IHTM11013 gives guidance on how the exemption applies to lifetime transfers
  • special instructions apply if the transfer is only partly exempt (IHTM26001)
  • you should follow the instructions at IHTM11025 if there is a claim against a deceased person’s estate which reduces the benefit that is taken and retained by the political party. If the claim is settled by the political party you should follow the guidance at IHTM11026 
  • if the transfer of value (IHTM04024) takes the form of a loan of money or other property the instructions at IHTM11133 apply. This is because IHTA84/S29 (5) applies to gifts to political parties in the same way as it does to charity exemption (IHTM11101).