IHTM44046 - Pre-owned assets: exemptions: reservation of benefit in property but for certain exemptions
»Ê¹ÚÌåÓýapp reservation of benefit provisions do not apply to disposals by way of gift that are exempt from Inheritance Tax (IHTM11000). FA04/Sch15/Para11(5)(b) provides that the POA charge does not apply where property would be subject to a reservation of benefit (IHTM14301) but for the following exemptions
- gifts to charities (IHTM11101),
- gifts to political parties (IHTM11191),
- gifts to housing associations (IHTM11211),
- gifts for national purposes (IHTM11221),
- maintenance funds for historic houses (IHTM11250), and
- employee trusts.
Note that where the disposal is to a maintenance fund, the POA charge is only disapplied when the property remains subject to the trusts complying with the requirements for maintenance funds, FA04/Sch15/Para11(10).
Note also that a gift to a spouse or civil partner which is exempt from the reservation of benefit provisions (IHTM14318), is not exempt under this provision, but is instead an excluded transaction under FA04/Sch15/Para10(1)(b) (IHTM44032).