Commentary

I4.221 Restrictions and anti-avoidance provisions

IHT, trusts and estates

I4.221 Restrictions and anti-avoidance provisions

I4.221 Restrictions and anti-avoidance provisions

Not all transfers of value to charities or other exempt bodies qualify for the exemptions described in those articles. A number of restrictions are set out in IHTA 1984, s 23(2)–(5) with respect to the charity exemption, and applied by reference by the sections which enact the other exemptions1. Those which are common to all the exemptions referred to in I4.215–I4.218 are as follows:

  1.  

    (a)     The gift must not take effect on the termination, after the transfer of value, of any interest or period2

  2.  

    (b)     The gift must not depend on a condition which is not satisfied within 12 months after the transfer3

  3.  

    (c)     The gift must not be defeasible. Whether a gift is defeasible is determined 12 months after the transfer4

  4.  

    (d)     The interest given must not be less than the donor's interest5. For example, a gift of a leasehold interest in 'Black Acres' would not attract an exemption where the donor also owned

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