IHTM14220 - Gifts in consideration of marriage or civil partnership: relationship with spouse or civil partner exemption

Spouse or civil partner exemption ( IHTM11031) ( IHTM11032) may apply to a gift in consideration of marriage or civil partnership ( IHTM14191) if

• the gift is conditioned only to have effect on the marriage or registration of a civil partnership taking place, and
• no beneficial interest ( IHTM04031) passes before the transferor and their intended spouse or civil partner are married or have entered into a civil partnership.

Example

Mr A buys a house which is conveyed on trust for himself until marriage and then to A and B (his wife) as joint tenants/joint owners (Sco) beneficially. In this case, the gift to B is complete on marriage and the spouse or civil partner exemption applies.

Defeasible interests

On the other hand, a gift in consideration of marriage or registration of civil partnership may create a beneficial interest before the marriage or registration of civil partnership, although that interest may be defeasible by the transferor if the marriage or registration of civil partnership does not take place.

Example

Mr A makes a gift of a house in favour of his fiancee "in consideration of marriage". Any loss to A’s estate by reason of the creation of the defeasible beneficial interest in possession is entitled to the exemption in consideration of marriage: the loss by the completion of the gift on marriage is entitled to the spouse or civil partner exemption.