IHTM11282 - Killed in war exemption: extent of the exemption

The exemption works by providing that IHTA84/S4 shall not apply on the death of the person concerned. So, the exemption relates to:

  • IHT which would otherwise be chargeable on the death under IHTA84/S4, and
  • all tax that would be chargeable on the death, under any title, and no matter who it is passing to

The exemption does not relate to any other tax or duty payable by reason of the death, for example

  • tax that is chargeable on a potentially exempt transfer (PET) (IHTM14024) or other lifetime transfer (IHTM14000) because of the death
  • tax chargeable when a discretionary trust comes to an end, in whole or in part, on the death, or
  • Estate Duty that is payable because an expectant interest falls into possession in the estate of another deceased person (where the option to defer payment of Estate Duty was exercised)

However, there are also two situations (IHTM11321) in which settled property can be exempted by reference to Estate Duty KIW exemption.