IHTM11031 - Spouse or civil partner exemption: introduction

From 6 April 2025, for inheritance tax purposes, domicile is replaced by long-term UK residence听and you can find details of these rules 补迟听IHTM47000.听

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 that听

  • it is attributable to property which becomes comprised听in the estate (IHTM04029) of the transferor鈥檚 spouse or civil partner (IHTM11032) or (so far as听it is not attributable)听

  • the spouse鈥檚 or civil partner's estate is increased, for example, when one spouse releases a debt due from the other听

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

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

Before 6 April 2025听

  • the transferor is domiciled听(IHTM13000) in the UK听immediately听before the transfer but听

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

After 6 April 2025听

  • The transferor is a long-term UK resident (IHTM47000) immediately听before the transfer but听

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

听

The limit is set against the transferor鈥檚 total cumulative transfers to a spouse or civil partner in lifetime and on death.听

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.