IHTM14853 - Transfers by close companies: exemptions

Any such transfer by a close company is a deemed transfer ( IHTM04061) for inheritance tax purposes and is not a PET ( IHTM04057), but

• the annual exemption ( IHTM14141) is available

as is

• spouse or civil partner exemption ( IHTM11031) ( IHTM11032) to the extent that the estate of the spouse or civil partner of a participator is increased.

The

• small gifts ( IHTM14180),
• normal out of income ( IHTM14131), and
• in consideration of marriage or civil partnership ( IHTM14191)

exemptions are not available since they cannot apply to deemed transfers.