- 1. The Scope of the Book: Estate Planning Introduced
- 1.4.4 The purposive approach
- 1.4.5 Three recent taxpayer successes
- 1.5.7 Transactions in securities
- 1.5.12 The three disclosure regimes
- 1.5.13 Two offshore disclosure regimes: 2007 and 2009
- 1.6.1 ‘Spotlights’ and ‘Signposts’
- 2. Inheritance Tax Mitigation: The Basics
- 3. Making Gifts: Outright or Protected?
- 4. Trusts: Tax-Efficient Management
- 6. The Family Business
- 6.1.3 Capital Gains Tax angles
- 6.3.5 Entrepreneurs’ Relief: Furnished Holiday Lettings
- 6.4.1 Summary principles
- 8. Chattels
- 9. Investments
- 11. Pensions
- 11.2.2 Withdrawing benefits
- 11.2.3 Transitional provisions
- 11.2.4 Unregistered schemes
- 11.3.1 The basic rule
- 11.3.2 Tax relief
- 11.3.3 Scheme input periods
- 11.3.4 Occupational schemes
- 11.4.1 SIPPs and SSASs distinguished
- 11.4.3 Transactions with employers
- 11.5.2 Tax-free cash
- 11.5.5 Death benefits
- 11.5.6 Age 75: ASP or annuity purchase?
- 11.5.7 Maximise or minimise income in retirement?
- 12. Charitable Giving
- 15. Leaving the UK
- 15.2.1 Overview
- 15.2.4 Occasional residence abroad not enough
- 15.2.5 Full-time work abroad
- 15.2.6 Ordinary residence
- 16. Non-UK Domiciliaries Living in the UK
- 17. Offshore Trusts and Companies
- 18. Wills
- 20. Compliance
2 - Inheritance Tax Mitigation: The Basics
Chapter: 2 - Inheritance Tax Mitigation: The Basics
The spouse/civil partner exemption
2.2.3
The exemption is unlimited except where the donor is UK domiciled and the donee is or is deemed to be non-UK domiciled, in which case there is the (rather odd) historic limitation to £55,000, on a lifetime basis (IHTA 1984 s18). See 13.2 and, for domicile, 15.3 and 16.4.
As to transfers between spouses/civil partners, it has been traditionally axiomatic that on death (and you never know who is going to go first) each individual should own at least £325,000 (for 2009/10) of chargeable value to pass to a beneficiary other than the survivor. This can be achieved by careful Will drafting – see Chapter 18. Otherwise the wastage of the exemption could cost up to £130,000 (40% of the nil-rate band for 2009/10). However, the advent of the transferable nil-rate band from 9 October 2007 (see 18.4.3) makes this unnecessary.