IHTM06019 - Rules about excepted estates: specified exempt transfers
Other exemptions, in addition to those listed at IHTM06018 may be deducted against lifetime transfers to work out the chargeable value to tax. However, in establishing whether an estate qualifies as an excepted estate, these exemptions must be ignored. The exemptions are those that apply on gifts to
- the deceased’s spouse or civil partner (IHTM11031)
- charities (IHTM11101)
- political parties (IHTM11191)
- housing associations (IHTM11211)
- maintenance funds for historic buildings (IHTM11211)
- employee trusts (IHTM04100)
If the deceased had made gifts that qualify for any of these exemptions, the value of these gifts must be added to the value of the estate and any ‘specified transfers’. Only if this total is below the relevant overall cash limit - the Inheritance Tax nil rate band for low value estates (IHTM06012) or £3,000,000 for exempt estates (£1,000,000 for deaths before 1 January 2022) (IHTM06013) - can the estate qualify as an excepted estate