I4.228 Spouse exemption—anti-avoidance provisions

IHT, trusts and estates

I4.228 Spouse exemption—anti-avoidance provisions

I4.228 Spouse exemption—anti-avoidance provisions

The exemption for transfers between spouses (see I4.225 onwards) does not apply where the disposition by which property is given either:


    (a)     depends on a condition which is not satisfied within 12 months after the transfer1


    (b)     'takes effect' on the termination of any interest or period (unless such termination precedes the transfer). A condition, however, that the transferee should survive the transfer for a specified period does not exclude the gift from the exemption2 although if that period exceeds 12 months the exemption would be excluded under (a) above. The expression 'takes effect' is not defined but, in HMRC's view, it means 'takes effect in possession'3


    (c)     where the spouse becomes entitled to settled property following the purchase of a reversionary interest under the settlement4, or


    (d)     where the disposal of property is made

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