Inheritance Tax Act 1984 section 203

Liability of spouse or civil partner

Section 203 deals with the circumstances in which a transferor's spouse or civil partner can be held liable for inheritance tax on a chargeable transfer, and the limits on that liability.

• Where a transferor is liable for IHT on a chargeable transfer, their spouse or civil partner may also be liable if they received property from the transferor under a separate transfer of value (a "spouse or civil partner transfer") made on or after 27th March 1974.
• The spouse or civil partner must have been married to, or in a civil partnership with, the transferor at the time of both the chargeable transfer and the spouse or civil partner transfer.
• The spouse or civil partner's liability is capped at the market value of the property they received at the time of the spouse or civil partner transfer, but this cap may be reduced to a lower market value if the property has fallen in value by the date of the chargeable transfer or an earlier qualifying sale, provided the property is not tangible movable property.
• The fall in value relief rules in sections 131 to 140 apply, with modifications, to determine the relevant lower market value for the purposes of this section.