IHTM06100 - Excepted transfers and terminations - introduction

Regulations have been made that excuse transferors and trustees from delivering an IHT100 in respect of certain transfers of value and occasions when property leaves a qualifying trust ( IHTM06101) in which an interest in possession exists. Regulations first made in 1981 ( IHTM06113) remained in force until 2008 when the Inheritance Tax (Delivery of Accounts) (Excepted Transfers and Excepted Terminations) Regulations 2008 SI 605 were introduced. These regulations apply to all transfers and terminations made on or after 6th April 2007.

As far as transfers are concerned, the regulations only apply to actual transfers of value and not to dispositions that are deemed to be transfers of value, for example, a transfer by a close company that is treated as made by the participators in the company.

The regulations only apply to requirement to deliver an account at the time the transfer is made or the termination takes place, they do not apply to the separate requirement to deliver an account that arises on the death of the transferor within 7 years of the transfer or termination concerned, when the normal reporting requirements under s.216 apply.

And they do not apply at all to potentially exempt transfers where there is no reporting requirement at all unless the PET fails on the death of the transferor within 7 years.