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HMRC internal manual

Inheritance Tax Manual

Step 1 - the starting value of specific gifts: settled gift

Property may be settled by a specific gift (IHTM26011), either

  • by giving a person a qualifying interest in possession (IHTM16061), such as a life interest to a surviving spouse or civil partner (IHTM11031) (IHTM11032), or
  • on relevant property trusts (IHTM42161).

In these situations the value of the gift for the purposes of the partly exempt transfer rules (IHTM26071) is the value of the property settled.