(1) A transfer of value is an exempt transfer to the extent that the value transferred is attributable to property which becomes comprised in the estate of the transferor's spouse [or civil partner]¹ or, so far as the value transferred is not so attributable, to the extent that the estate is increased.

(2) If, immediately before the transfer, the transferor but not the transferor's spouse [or civil partner]¹ is domiciled in the United Kingdom the value in respect of which the transfer is exempt (calculated as a value on which no tax is chargeable) shall not exceed £55,000 less any amount previously taken into account for the purposes of the exemption conferred by this section.

(3) Subsection (1) above shall not apply in relation to property if the testamentary or other disposition by which it is given—

(a) takes effect on the termination after the transfer of value of any interest or period, or

(b) depends on a condition which is not satisfied within twelve months after the transfer; but paragraph (a) above shall not have effect by reason only that the property is given to a spouse [or civil partner]¹ only if he survives the other spouse for a specified period.

(4) For the purposes of this section, property is given to a person if it becomes his property or is held on trust for him.