Spouse or civil partner exemption (UK inheritance tax)
Qualifying transfers of value between spouses or civil partners can be exempt from inheritance tax during lifetime or on death. The general exemption is unlimited in qualifying cases, but statutory restrictions can apply depending on the parties’ status and circumstances. Do not assume the same treatment for unmarried partners. For the 2025–26 assessment basis, check the applicable law; the current TX guide excludes the detailed long-term residence test.
Worked example
An individual leaves their estate to their spouse. If the statutory conditions for the unlimited spouse exemption are met, the qualifying transfer is exempt; any unused nil rate band and other estate issues are considered separately.
Common mistake
Assuming the exemption applies automatically to an unmarried partner, or ignoring statutory limitations where a spouse’s circumstances require them.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | TX (UK) | Direct | June 2026–June 2027 |