Dispositions that are not transfers of value

Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance

Dispositions that are not transfers of value

Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance
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This guidance note discusses transfers which result in a diminution in the transferor’s estate but which are not transfers of value for inheritance tax (IHT) purposes. There are some transfers specifically excluded from the legislation. These include dispositions not intended to confer gratuitous benefit, those for family maintenance, those allowable for income tax or conferring benefits under pension schemes or those made by close companies for the benefit of employees. Other dispositions which are not transfers of value include the waiver of remuneration or dividends, the grant of tenancies of agricultural property and changes in the estate of a deceased individual. Each of these dispositions is covered in detail below.

List of dispositions that are not transfers of value

The dispositions that are not transfers of value are:

Dispositions not intended to confer gratuitous benefitIHTA 1984, s 10
Dispositions for family maintenanceIHTA 1984, s 11
Dispositions allowable for income tax or conferring benefits under pension schemesIHTA 1984, s 12
Dispositions by close companies for the benefit

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