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

Continue reading the full document

To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+™

TAKE A FREE TRIAL NOW

Popular Articles

Corporation Tax

Enterprise investment scheme tax relief

Enterprise investment scheme tax reliefOverview of EIS tax reliefsThe enterprise investment scheme (EIS) offers significant tax reliefs to encourage individuals to invest money in qualifying shares issued by qualifying unquoted companies. The scheme is designed to encourage investment in small,

14 Jul 2020 11:36 | Produced by Tolley Read more

Trusts and Inheritance Tax

Spouse exemption from inheritance tax

Spouse exemption from inheritance taxArguably, the most important inheritance tax exemption is the spouse exemption from inheritance tax.There is no IHT to pay on gifts from husband to wife and vice versa, or from one civil partner to the other (referred to collectively in this note as ‘spouses’).

14 Jul 2020 13:56 | Produced by Tolley in association with Emma Haley at Boodle Hatfield LLP Read more

Owner-Managed Businesses

Tax implications of administration and liquidation

Tax implications of administration and liquidationThis guidance considers the tax implications of a company going into administration or liquidation.Introduction to company administration and liquidationCompany going into administrationA company which is in financial difficulty may go into

14 Jul 2020 15:29 | Produced by Tolley Read more

��˾��ҹ��