IHTM14131 - Lifetime transfers: specific lifetime exemptions: summary

There are two distinct groups of IHT exemptions

• those which apply only to lifetime transfers, and
• those which apply to both death and lifetime transfers.

This section is concerned only with those exemptions which apply solely to lifetime transfers and these are:

• Annual exemption (IHTM14141)
• Small gifts (IHTM14180)
• Normal expenditure out of income (IHTM14231), and
• Gifts in consideration of marriage or civil partnership (IHTM11032) (IHTM14191).

If the transfer is wholly exempt, for example because the assets pass to the transferor’s spouse or civil partner (IHTM11031), or to a charity (IHTM11101), then you do not need to consider whether these lifetime exemptions apply. For details of exemptions applying to both death and lifetime transfers please refer to section 11 of this manual, (IHTM11000).