IHTM11321 - Estate Duty KIW exemptions for settled property: surviving spouse exemption

The IHT charge is removed on the termination of an interest in possession (IHTM16091) in settled property (IHTM16000) where the person whose interest terminates, is the surviving spouse of a person on whose death the Estate Duty KIW (IHTM11281) exemption applied. Estate Duty that was not paid because of certain KIW exemptions and remissions is treated as ‘paid’ for the purposes of the exemption under Sch 6 para 2. Further details are given in the section on settled property (IHTM16150).