IHTM11031 - Spouse or civil partner exemption: introduction

From 6 April 2025, for inheritance tax purposes, domicile is replaced by long-term UK residenceÌýand you can find details of these rules ²¹³ÙÌýIHTM47000.Ìý

In general, under IHTA84/S18 (1), transfers of value between spouses or civil partners (IHTM11032) are wholly exempt. More specifically the section exempts a transfer of value (IHTM04024) to the extent thatÌý

  • it is attributable to property which becomes comprisedÌýin the estate (IHTM04029) of the transferor바카라 사이트™s spouse or civil partner (IHTM11032) or (so far asÌýit is not attributable)Ìý

  • the spouse바카라 사이트™s or civil partner's estate is increased, for example, when one spouse releases a debt due from the otherÌý

The exemption also applies to transfers of settled property (IHTM11062) in which the transferor had a qualifying interest in possession (IHTM16062).Ìý

The exemption is without a value limit except in one situation. This is where:Ìý

Before 6 April 2025Ìý

  • the transferor is domiciledÌý(IHTM13000) in the UKÌýimmediatelyÌýbefore the transfer butÌý

  • the spouse or civil partner is domiciled outside the UK (IHTM11033).Ìý

After 6 April 2025Ìý

  • The transferor is a long-term UK resident (IHTM47000) immediatelyÌýbefore the transfer butÌý

  • The spouse or civil partner is not a long-term UK resident (IHTM47000)Ìý

Ìý

The limit is set against the transferor바카라 사이트™s total cumulative transfers to a spouse or civil partner in lifetime and on death.Ìý

The exemption is subject to several exclusions designed to prevent it being used for tax avoidance. Where the exemption can be accepted under general practice (IHTM11023) the exclusions need not be considered, but where the exemption cannot be accepted in this way you should consider whether the exclusions (IHTM11091) apply.