Section 78 | Scope of exemption for gifts to charities and registered clubs

(1)IHTA 1984 is amended as follows.

(2)In section 23 (gifts to charities or registered clubs), in subsection (6)—

(a)in paragraph (a), omit “or is held on trust for charitable purposes only”;

(b)in paragraph (b), omit “or is held on trust for purposes of registered clubs only”.

(3)In section 29A (abatement of exemption where claim settled out of beneficiary’s own resources), in subsection (6), in paragraph (b) of the definition of “the exempt beneficiary”, omit sub-paragraph (ii) and the “or” before it.

(4)In section 142 (alteration of dispositions taking effect on death)—

(a)in subsection (3A), for “the appropriate person” substitute “the charity or registered club to which the property is given”;

(b)omit subsection (3B).

(5)The amendments made by this section have effect—

(a)in relation to a transfer of value made on a person’s death, if the person dies on or after 6 April 2026;

(b)in relation to a transfer of value made at any other time, if the transfer is made on or after 26 November 2025.

References in this subsection to the making of a transfer of value are to be construed in accordance with IHTA 1984.