Taking the long view

Ray Magill considers transfers to a non-domiciled spouse or civil partner

Executors of someone UK domiciled whose surviving spouse or civil partner is, or has been, non-domiciled may need to explore the deceased’s financial history for much more than the last seven years before death. This is because the usual inheritance tax (IHT) exemption for gifts and bequests between spouses and civil partners is restricted to an amount equivalent to the nil-rate band in such cases.

The Inheritance Tax Act (IHTA) 1984 s 18(2) says: