Exempt transfers for IHT

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

Exempt transfers for IHT

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

This guidance note details transfers which are exempt for inheritance tax (IHT) purposes. Some exemptions apply on lifetime transfers and on death, but others apply only to lifetime transfers. These are clearly noted below. Potentially exempt transfers (PETs) will be entirely exempt where the donor survives for seven years. Lifetime only exemptions include annual exemptions, the marriage exemption, small gifts and the normal expenditure out of income exemption. Spouse exemption applies on lifetime transfers and transfers on death to exempt the whole value of transfers between UK domiciled (to 5 April 2025) or long-term UK resident (6 April 2025 onwards) spouses. A limited exemption applies where the transferee spouse is non-domiciled (to 5 April 2025) or not long-term UK resident (6 April 2025 onwards). Various other exemptions apply including the charity exemption, donations to some political parties, gifts to the nation or a housing association and gifts to maintenance funds for a historic building and employee trusts.

Exempt transfers ― summary

Total exemption

A transfer is exempt from IHT where it is:

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+™
Powered by Tolley+

Popular Articles

Payment of the remittance basis charge

Payment of the remittance basis chargeRemittance basis chargeThe remittance basis charge is an annual charge payable by ‘long-term’ UK residents for the privilege of claiming the remittance basis.Taxpayers who wish to utilise the remittance basis (but do not qualify for it automatically) must pay

14 Jul 2020 12:52 | Produced by Tolley Read more Read more

Special rate pool and long life assets

Special rate pool and long life assetsSpecial rate poolExpenditure on some types of plant or machinery must, if neither annual investment allowance (AIA) nor first year allowances (FYAs) are available, be allocated to a ‘special rate pool’. Expenditure to be allocated to the special rate pool

14 Jul 2020 13:41 | Produced by Tolley Read more Read more

Long service awards

Long service awardsEmployee recognition by an employer can be an important motivational tool, as well as having a positive effect on retention. Most employer awards made to an employee are treated as taxable earnings under ITEPA 2003, s 62 or as a benefit under ITEPA 2003, s 201 because they are

14 Jul 2020 12:11 | Produced by Tolley Read more Read more