IHTM11012 | Groups of exempt transfers: lifetime and death transfers

From HM Revenue & Customs · Inheritance Tax Manual

This group consists of

  • transfers between spouses or civil partners () and ()

  • transfers to charities and registered sports clubs ()

  • transfers to political parties ()

  • transfers of land to registered housing associations () or registered social landlords

  • transfers for national purposes ()

The exemptions in the group have the following features in common

  • they apply to deemed transfers () as well as actual transfers (). So they apply to transfers on death and on the ending of a qualifying interest in possession in settled property as well as to actual transfers during lifetime

  • where the transfer is only partly exempt (), the extent to which it is exempt is determined by to

  • the application of the exemptions is restricted by broadly similar provisions

  • to the extent that a gift is an exempt transfer under any of these sections, the gift with reservation () provisions do not apply - and

  • there is a general formula () for working out how much exemption is due.