Commentary

I3.342 Loans as exempt transfers

IHT, trusts and estates

I3.342 Loans as exempt transfers

I3.342 Loans as exempt transfers

A loan of money or other property can be a transfer of value, for example, if there is an agreement for it to be for a fixed term and interest-free. A loan that can be recalled at will is not usually a transfer of value because the lender's estate is not significantly diminished1.

By virtue of IHTA 1984, s 29, loans that are transfers of value and are made to borrowers in most of the exempt categories can qualify for exemption, provided that the terms on which the money or other property is lent preclude

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