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Exempt transfers for IHT


Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance

Exempt transfers for IHT


Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance
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This guidance note details transfers which are exempt for IHT purposes. Some exemptions apply on lifetime transfers and on death but others apply only to lifetime transfers. These are clearly noted below. Potentially exempt transfers (PET) will be entirely exempt where the donor survives for seven years. Lifetime only exemptions include annual exemptions, the marriage exemption, small gifts and the normal expenditure out of income exemption. Spouse exemption applies on lifetime transfers and transfers on death to exempt the whole value of transfers between UK domiciled spouses. A limited exemption applies where the transferee spouse is non-domiciled. Various other exemptions apply including the charity exemption, donations to some political parties, gifts to the nation or a housing association and gifts to maintenance funds for a historic building and employee trusts.

Exempt transfers ― summary

Total exemption

A transfer is exempt from IHT where it is:

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  • 04 Jul 2024 12:41

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