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IHTM11114 | General outline: quantifying the exemption

From HM Revenue & Customs · Inheritance Tax Manual

When considering the extent of any exemption you should look out for situations where

  • lifetime transfers (IHTM11013) are involved

  • the transfer is only partly exempt (IHTM26001)

  • the deceased is domiciled outside the UK (IHTM11013)

  • there is a claim (IHTM11025) against a deceased person’s estate which was settled by an exempt beneficiary (IHTM11026) out of their own resources

  • the exemption has a value limit. Inheritance Tax has no value limit. However, until 1983 there was a value limit on the corresponding exemption for Capital Transfer Tax. The limit was removed by F(No.2)A 1983. If you need to consider a transfer made before 15 March 1983 seek advice from Technical.