IHTM06108 - Excepted transfers and terminations - statutory clearance

There is generally no statutory clearance for an excepted transfer or termination because the death of the transferor with 7 years of making the transfer will cause any potentially exempt transfers (IHTM04057) to fail and cumulate with other chargeable transfers. The only exception is where the value transferred by termination of a life interest is covered by the exemptions available to the life tenant (IHTM06107). Where this applies, unless we issue a notice to the trustees to deliver an account within 6 months of the date of the termination, the trustees are discharged from any claim to tax on the disposal.

The discharge does not apply, however, if we are given false information or if all the material facts are not disclosed, and only applies to the trustee’s liability for tax.