Spouse exemption from inheritance tax
Trusts and Inheritance Tax
Guidance
Arguably, the most important inheritance tax exemption is the spouse exemption from inheritance tax.
There is no IHT to pay on gifts from husband to wife and vice versa, or from one civil partner to the other (referred to collectively in this note as ‘spouses’). The exemption applies to inter-spouse transfers during lifetime and on death, but this guidance note concentrates on lifetime gifts.
See also the Providing for a spouse or civil partner guidance note.
The amount of the spouse exemption from inheritance tax
The exemption is unlimited in amount, except on transfers (either during lifetime or on death) from a UK domiciled spouse to a non-UK domiciled spouse before 6 April 2025 or from a long-term UK resident spouse to a non-long-term UK resident spouse on or after that date. In this case, the spouse exemption is limited to the same amount as the prevailing nil rate band (currently £325,000), although that amount is available in addition to the donor’s available nil rate band. See the
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