What exemptions are available from inheritance tax? Private Wealth

Gifts to certain people are exempt from inheritance tax. The exemptions are:

Gifts to a spouse or civil partner

Any gift made between spouses (including same sex spouses) or civil partners during lifetime or on death is free of IHT (unless one individual is not domiciled in the UK, in which case the exemption may be restricted).

Gifts to charities

Outright gifts made to charities in the UK, EU, Norway and Iceland, or to charitable trusts from which only those charities may benefit, are exempt from IHT. To qualify, the charity (or charities) must be established in one of those jurisdictions and must be for recognised charitable purposes.

Gifts to political parties

Gifts to political parties are exempt, provided that the party is of sufficient stature.

Gifts of land to housing associations

Gifts of land to housing associations or to registered social landlords are exempt from IHT.

Gifts for national purposes

Gifts for national purposes are exempt from IHT. The IHT legislation contains a list of bodies and institutions that are covered by this exemption. For example, gifts to the National Gallery or British Museum, or another national institution which exists wholly or mainly for the purpose of preserving a collection of scientific, historic or artistic interest for the public benefit.

Gifts to heritage maintenance funds

Heritage maintenance funds are trusts that maintain historic buildings, or land of scenic, scientific or historic interest. HMRC determines whether the building or land is sufficiently important to merit the exemption.

Our Private Wealth Specialists

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