Chapter IHTM11032
| Published date | 20 March 2016 |
| Record Number | IHTM11032 |
| Court | HM Revenue & Customs |
| Issuer | HM Revenue & Customs |
The Inheritance Tax legislation does not define ‘spouse’ or ‘civil partner’ so the definitions come from general law. Consequently, the exemption applies to transfers between people who are lawfully married to each other at the time of the transfer (this includes same-sex couples from 13 March 2014 in England and Wales, 16 December 2014 in Scotland and 13 January 2020 in Northern Ireland) and to transfers between people who are registered as civil partners of each other at the time of the transfer.
Spouses include
- people who are legally married but separated
- parties to a valid polygamous marriage. The marriage confers the IHTA84/S18 exemption on all transfers to all the spouses of the transferor or deceased who qualify under IHTA84/S18. Where the IHTA84/S18 (2) limit applies because of foreign domicile of those spouses (IHTM11033), the total exemption (including any similar lifetime exemptions) may not exceed that limit.
The following are not spouses
- people who are living together but not lawfully married, however long the relationship may have lasted (in England, Wales and Northern Ireland)
- In Scotland the one form of irregular marriage that has been recognised by Scots law is that by cohabitation with habit and repute. This arises where a man and woman cohabit together as husband and wife and behave towards each other as such for a considerable length of time, so it is generally believed by the society and neighbourhood in which they live, and among their friends and relatives that they are married. They are then presumed to be married, although it is impossible to state precisely the place and a time when they exchanged the consent which is essential for marriage. Marriage by cohabitation with habit and repute was abolished by The Family Law (Scotland) Act 2006. It will remain an issue for the Courts for some time to come, however, since claims can still be admitted if based on a period of cohabitation that occurred before the commencement of the Act. If it is claimed that this common law style of marriage entitles the parties to the exemption under IHTA84/S18 (1) in either a death or lifetime situation you should refer the file to Technical.
- parties to a bigamous marriage
- people who were formerly lawfully married but divorced before the date of death/transfer
Civil partners are couples who have entered into a contractual partnership formally recognised by law under the Civil Partnership Act 2004 which came into effect on 5 December 2005...
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