Partial exemption and attribution
I4.231 Introduction to partial exemptions and attribution
IHTA 1984, ss 36–42 apply where 'any one or more of IHTA 1984, ss 18, 23–27, 30 apply in relation to a transfer, but the transfer is not wholly exempt'1 ie, to partly exempt transfers to spouses, charities and political parties, and for national purposes and transfers which are conditionally exempt. These sections determine how much of the value transferred is exempt, how much is chargeable, and how the IHT is to be borne. It should be noted that:
• no distinction is drawn between transfers on death, and transfers made during lifetime, but the circumstances in which a lifetime transfer of value will be partly exempt will virtually non-existent. A lifetime gift will always be a defined gift — there will never be any 'residue' because individuals rarely give away their entire estates before death.
One of the problems in the drafting of these sections is that they originate from FA 1972 which applied only on death, for example,
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