Spouse exemption from inheritance tax

Produced by Tolley in association with Emma Haley at Boodle Hatfield LLP

Trusts and Inheritance Tax

Guidance

Arguably, the most important inheritance tax exemption is the spouse exemption from inheritance tax (IHT).

There is no IHT to pay on gifts from husband to wife and vice versa, or from one civil partner to the other (referred to collectively in this note as ‘spouses’). The exemption applies to inter-spouse transfers during lifetime and on death, but this guidance note concentrates on lifetime gifts.

See also the Providing for a spouse or civil partner guidance note.

The amount of the spouse exemption from inheritance tax

The exemption is unlimited in amount, except on transfers (either during lifetime or on death) from a UK domiciled spouse to a non-UK domiciled spouse before 6 April 2025 or from a long-term UK resident spouse to a non-long-term UK resident spouse on or after that date. In this case, the spouse exemption is limited to the same amount as the prevailing nil rate band (currently £325,000), although that amount is available in addition to the donor’s available nil rate band. See

Continue reading the full document

To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™

TAKE A FREE TRIAL NOW

Emma Haley

Associate at Boodle Hatfield LLP

Emma Haley is a senior associate solicitor at leading private client firm, Boodle Hatfield LLP, renowned for providing first-class and practical legal advice to wealthy clients around the world.Emma has many years experience in dealing with all aspects of wills, probate, capital taxation and succession planning as well as UK and offshore trusts. Emma currently heads up a technical know-how team and is a regular writer and lecturer on estate planning and inheritance tax and also a member of the Society of Trust and Estate Practitioners.

Popular Articles

Corporation Tax

Double tax relief

Double tax reliefWhen income arises in a foreign country to a UK resident company and that income is taxable in that foreign country, the UK may give the company relief for the foreign tax by crediting the foreign tax against the UK tax charged on that income. This might include withholding tax on

14 Jul 2020 11:31 | Produced by Tolley Read more

Employment Tax

Subsistence expenses

Subsistence expensesIntroductionSubsistence is the amount incurred as a consequence of business travel. Typically it relates to accommodation and meal costs incurred. These amounts are allowed because they are associated with the necessary travel which is not to a permanent workplace. See the Travel

14 Jul 2020 13:43 | Produced by Tolley in association with Philip Rutherford Read more

Trusts and Inheritance Tax

Holdover relief for disposals by trustees

Holdover relief for disposals by trusteesOverviewWhere a capital gain has been realised on an asset that has been disposed of and that disposal was not for full value (that is not in an arm’s length sale) then holdover relief may be available. This will happen when trustees appoint capital assets

14 Jul 2020 11:54 | Produced by Tolley Read more

Spouse exemption from inheritance tax

Spouse exemption from inheritance tax