IHTM14192 - Gifts made in consideration of marriage or civil partnership: practice

In deciding if the exemption applies, give thought to the following points

1. The relationship between the transferor and the transferee

The term "child" in IHTA84/S22 (2) includes an illegitimate child, an adopted child and a stepchild and the terms "parent", "descendant" and "ancestor" are to be construed accordingly.

2. True identity of the recipient of the property
3. The conditions imposed by Rennell V IRC (IHTM14201) as restricted by IHTA (IHTM14212).
4. The timing of the gift - if the gift is not made at the time of, or shortly before the marriage or civil partnership (IHTM11032), the taxpayer must show that the gift was somehow made in contemplation of marriage or civil partnership. Gifts in consideration of the registration of a civil partnership made prior to the Civil Partnership Act 2004 coming into force on 5 December 2005 which nevertheless satisfy the conditions for exemption under s.22 IHTA 1984 will qualify for the exemption
5. In the following situations you must to refer to Technical Group or non-death risk assessors as appropriate

• where the gift was made before the marriage or civil partnership but at a time when the parties could not have married or entered into a civil partnership because an existing marriage or civil partnership of one of them had not yet been dissolved or annulled
• where owing to the circumstances or the language of the documents there is some doubt as to whether the claim for exemption should be admitted.