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HMRC internal manual

Inheritance Tax Manual

HM Revenue & Customs
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Provisions relating to Legitim: the basic rule in s.147

Under the basic rule in IHTA84/S147 (2), you should charge tax as if legitim (IHTM12221) has been claimed. This means that you should restrict spouse or civil partner exemption (IHTM11031) (IHTM11032) by allowing for the legitim entitlement in full. However, if the person(s) entitled to claim legitim renounce (IHTM12229) their claim either

  • before attaining 18, or
  • within two years of attaining 18, or such longer period as the Board may allow

the amount of spouse or civil partner exemption can be revised accordingly. The usual time limit for repaying tax in IHTA84/S241 is removed, IHTA84/S147 (8), and you should add the interest supplement (IHTM31000) to the repayment in the usual way.

You should refer any case where a period longer than two years is proposed to TG.

However, if the executors so wish they can elect (IHTM35213) under IHTA84/S147 (3) that the provisions of IHTA84/S147 (4) should apply to the estate.