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Home / Simons-Taxes /IHT, trusts and estates /Part I3 Lifetime transfers /Division I3.3 Exemptions and reliefs for lifetime transfers /Application of general exemptions during lifetime / I3.344 Lifetime exemptions—anti-avoidance
Commentary

I3.344 Lifetime exemptions—anti-avoidance

IHT, trusts and estates

There are various restrictions and anti-avoidance provisions relating to the charitable and other 'exempt body' exemptions (see I4.215–I4.218). They are set out in IHTA 1984, s 23 (the exemption for gifts to charity)1 and incorporated by reference in IHTA 1984, ss 24, 25 (the other 'exempt body' exemptions).

If a transfer of value does not comply with them then it is not exempt, unless it is a loan of money or other property — see I3.342. Their purpose is to prevent abuse of the exemptions and their use as a means of tax avoidance.

The main requirements they impose are that:

  1. Ìý

    •ÌýÌýÌýÌý the disposition should be immediate, unconditional and indefeasible2

  2. Ìý

    •ÌýÌýÌýÌý a disposition of an interest in property should be unlimited in time and of all the donor's interest in the property3

  3. Ìý

    •ÌýÌýÌýÌý there should be no interest reserved

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Web page updated on 17 Mar 2025 17:31