Commentary

I4.225 Transfers between spouses

IHT, trusts and estates

I4.225 Transfers between spouses

Exemptions available on death—the spouse exemption

I4.225 Transfers between spouses

Subject to the exceptions set out below a transfer of value is an exempt transfer to the extent that the value transferred is attributable to property which becomes comprised in the estate of the transferor's spouse, or civil partner1.

This means that if a lifetime transfer of an item of property by someone to their spouse involves a diminution in the value of their estate (and thus a transfer of value) (see I3.111–I3.114) which is greater than the increase in value of the spouse's estate as a result of the transfer, the entire transfer of value will still be exempt.

There will not usually be a great difference between the diminution in a transferor's estate for IHT purposes caused by a gift to their spouse and the value of the property given. This is usually even in the case of a majority holding of private company shares, because the related

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