Commentary

I3.332 Transfers between spouses or civil partners

IHT, trusts and estates

I3.332 Transfers between spouses or civil partners

I3.332 Transfers between spouses or civil partners

Subject to the exceptions set out below a transfer of value from one spouse (or civil partner) to another is exempt1:

  1.  

    (a)     if it is attributable to property which becomes comprised in the estate of the transferor's spouse, it is exempt to the extent of the value transferred, or

  2.  

    (b)     if it has the effect of increasing the value of the spouse's estate (for example, by increasing the value of some asset held by the spouse), it is exempt to the extent of the increase

The main discussion of this exemption is in I4.225, with the special rules for transfers where spouses have different domiciles considered in I4.227, and the restrictions and anti-avoidance provisions considered in I4.228.

Exemption (b) above is far more likely to be a lifetime transfer than one made on death. The exemption is limited to the amount of the increase of the transferee's estate, so

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial