Lifetime transfers: gifts in consideration of marriage or registration of civil partnership: IHTA restriction of Rennell - outright gifts and other dispositions
To qualify for exemption under IHTA84/S22(1), an outright gift has to be to a party to the marriage or civil partnership (IHTM11032). If one or more of the donees is not a party to the marriage or civil partnership, you must apportion the property comprised in the gift between the exempt and non-exempt donees. This applies whether the donees take distinct interests or separate gifts.
These qualify for exemption only if all the beneficiaries fall within the categories in IHTA84/S22(4). The subsection does not permit an apportionment between exempt and non-exempt beneficiaries.
You can regard the disposition as an outright gift unless it creates a settlement (IHTM16011). If property is settled by the gift it is an ‘other disposition’ and falls within IHTA84/S22(4). See the separate instructions where the disposition concerned is the termination of an interest in possession in settled property (IHTM14221)
It may be possible to treat a settlement as comprising more than one disposition, for example where different shares of the trust property are settled on different trusts. However, if the taxpayer proposes sub-dividing the separate distinct set of trusts into further separate dispositions, refer to Technical.