IHTM09733 | Related property: definition of related property

Property (IHTM04030) is related to property in a person’s estate (IHTM04029) if:

• it is comprised in the estate of that person’s spouse or civil partner (IHTM11032), or

• it is or has within the previous 5 years been the property of

  • a charity (IHTM11101), or held on trust for charitable purposes

  • a qualifying political party (IHTM11191)

  • a registered housing association (IHTM11211), with effect from 14 March 1989

  • one of the bodies and institutions (IHTM11221) listed in schedule 3, or a body to which IHTA84/S26 applies

and became so following an exempt transfer by the deceased, transferor or that person’s spouse or civil partner after 15 April 1976.

For the purposes of transfers to a charity or one of the other bodies listed above,whether a particular person is another’s spouse or civil partner depends on that person’s status at the date of the transfer that is being valued and not the earlier exempt transfer.

If a charity or other body sells on the assets transferred to them to another such body, then

• the property would no longer be the property of a qualifying body, and

• the 5 year period would start to run from the date of the sale.