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

To read the full Guidance note, register for a free trial of Tolley+™

TAKE A FREE TRIAL

Popular Articles

Corporation Tax

Group relief for carried-forward losses

Group relief for carried-forward lossesThis guidance note examines in detail the relief available to groups for carried-forward losses. The scope excludes the treatment of specialist businesses such as banks, insurance companies and oil and gas companies.From 1 April 2017, companies can surrender

14 Jul 2020 11:50 | Produced by Tolley Read more

Owner-Managed Businesses

Sales, advertising and marketing

Sales, advertising and marketingExpenditure on sales, advertising and marketing activities may include amounts which are disallowable for the purposes of calculating trading profits. This may be because the expenditure is:•capital in nature (see the Capital vs revenue expenditure guidance note)•not

14 Jul 2020 13:28 | Produced by Tolley Read more

Trusts and Inheritance Tax

Corrections and amendments to the IHT account

Corrections and amendments to the IHT accountThis guidance note explains how to deal with changes to the taxable values in the original inheritance tax account.Why do amendments arise?When the IHT account is first submitted to HMRC, it is based on information available at an early stage of the

14 Jul 2020 11:20 | Produced by Tolley Read more

��Ƶ