Transfers to a spouse or civil partner who is not long-term UK resident (6 April 2025 onwards)

Produced by a Tolley Trusts and Inheritance Tax expert

Trusts and Inheritance Tax

Guidance

This guidance note covers the IHT consequences of transfers between spouses where the transferee spouse is not long-term UK resident (LTUKR). It details the election that can be made for the spouse who is not LTUKR to be treated as LTUKR and when and how to make the election.

Throughout this note references to spouses include civil partners.

Spouse exemption for an individual who is not long-term UK resident (LTUKR)

Transfers between LTUKR spouses are wholly exempt for the purposes of UK inheritance tax, whether made in lifetime or death.

General planning using the spouse exemption is covered in the Spouse exemption from inheritance tax guidance note. Long-term UK residence is discussed in the Long-term UK residence guidance note.

Where the transfer is by a LTUKR spouse to one who is not LTUKR, the exemption is capped at an amount equivalent to the nil rate band, currently £325,000. Thus, LTUKR spouse is able to transfer up to twice the value

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