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 the Transfers

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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.

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