IHTM11173 | Exclusions from exemption: defeasible gifts

Under IHTA84/S23 (2)(c) a gift to a charity (IHTM11112) is not exempt if it is defeasible. Broadly, a defeasible gift is one which can be defeated by a future event, such as a gift that could be revoked.

Any gift that:

• has not been defeated within the twelve months after the transfer, and

• cannot be defeated at any time after this point in time(even if it could have been defeated before the twelve months had passed)

should be treated as not defeasible.