A gift to any other "dependent relative" is also not a transfer of value to the extent that it is a reasonable provision for the relative's care or maintenance.
Armed Forces
If a serving, or former, member of the Armed Forces dies from, (or death can be shown to have been hastened by), an injury sustained or disease contracted whilst on active service against the enemy or other service of a warlike nature (such as operations against hostile forces in peace time or anti-terrorist operations), a complete exemption from IHT can be granted on their estate.
This little-known exemption could be very useful. It was used by the executors of the fourth Duke of Westminster in 1967. His family, one of the wealthiest in Britain, successfully claimed his death from cancer had been ‘hastened’ by a stomach wound he suffered fighting in France in 1944 and paid no inheritance tax at all.
IHT reliefs
The term 'relief' applies to cases where there has been a chargeable transfer of value, but tax was not charged on the full value transferred.
Written by Kim Jarvis, Canada Life
Kim Jarvis is Technical Manager with Canada Life’s ican Technical Services Team.
Canada Life offers a range of wealth management solutions, including retirement income planning, estate planning and investment solutions from a choice of jurisdictions, including the UK, Isle of Man and Republic of Ireland.
