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IHTM11194 | Gifts to political parties: gifts to the Conservative party

From HM Revenue & Customs · Inheritance Tax Manual

You should accept that gifts to The Conservative Party Foundation Ltd. have become the property of the Conservative Party, unless there are conditions attached to the gift that specify how it should be used. This may be an ‘express trust’.

You should refer the case to Technical if:

  • conditions are attached to the gift that may indicate that an express trust applies.

  • you have any doubt that the gift will become the property of the Conservative Party.

  • the gift is by will (IHTM12041) (or exceptionally, under a settlement) and is to the Conservative party, itself or to the Central Office Fund or its treasurers, exemption has been claimed, and the net cumulation would exceed the nil-rate band if that exemption were not available. This is because dicta in the case of Conservative and Unionist Central Office v Burrell [1982] 2 AER 1 throws doubt on the legal validity of such a gift.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)