Inheritance Tax Act 1984 section 36

Preliminary

Section 36 introduces the rules for allocating exemptions when a transfer of value is only partly exempt, directing practitioners to the detailed provisions in sections 37 to 41.

• Where a transfer of value qualifies for one or more IHT exemptions but is not wholly exempt, specific allocation rules apply.
• The relevant exemptions include transfers between spouses or civil partners, gifts to charities, political parties, housing associations, national purposes bodies, maintenance funds for historic buildings, and conditionally exempt transfers.
• Sections 37 to 40 determine how far the transfer is exempt and, where there is a limit on the exemption, how any excess is attributed among the various gifts.
• Section 41 governs which beneficiary or gift bears the resulting inheritance tax liability.