Transfers to a non UK domiciled spouse or civil partner (before 6 April 2025)

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 UK domiciled. It details the election that can be made for the non-domiciled spouse to be treated as UK domiciled and when and how to make the election.

Throughout this note, references to spouses include civil partners.

Spouse exemption for a non UK domiciled individual

Transfers between UK domiciled spouses are wholly exempt for the purposes of UK inheritance tax, whether made in lifetime or death. Where the deemed domicile rules in IHTA 1984, s 267 apply, the full spouse exemption also applies.

General planning using the spouse exemption is covered in the Spouse exemption from inheritance tax guidance note. Domicile is discussed in the Domicile for UK inheritance tax guidance note.

Where the transfer is by a UK domiciled spouse to a non-UK domiciled one the exemption is capped at an amount equivalent to the nil rate band, currently £325,000. Thus, a UK domiciled

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