IHTM04042 - Transfers on death: deemed transfer on death

The first part of IHTA84/S4 (1) says that tax shall be charged as if the deceased had made a transfer of value ( IHTM04024) immediately before their death. This creates a deemed transfer of value (IHTM04025). Under IHTA84/S3 (4) a deemed transfer of value is in general treated as an ordinary transfer of value. But the two principal effects of this approach to the death charge are that

• reliefs under which certain types of disposition are not transfers of value, ( IHTM04151) do not apply, but
• other reliefs and exemptions do apply (except so far as they are expressly excluded). It is IHTA84/S3 (4) which makes, for example, BR and AR and the main exemptions, such as spouse or civil partner exemption ( IHTM11032) available on death. Other exemptions will also apply unless they are expressly excluded, such as those intended to give relief only to lifetime transfers like