Transfers of value are exempt transfers to the extent that the value transferred by them is attributable to property which is given to charities or 'registered clubs'1 (ie community amateur sports clubs2). See I4.221 for restrictions and anti-avoidance provisions applicable to the relief.
A 'charity' is an institution which is established for charitable purposes only and is subject to the control of the High Court's charity law jurisdiction3. The term is further defined at B5.805.
The word 'charitable' should be construed in its technical legal sense and, therefore, a gift to a needy individual is not a gift for charitable purposes4. A gift for benevolent purposes is not a charitable gift because it is too uncertain and goes beyond the legal definition of charities5.
This definition applies for IHT purposes from 1 April 2012. However HMRC will allow exemption for gifts made on or after 27 January 2009 to charities established in the EU6 and other territories specified by HMRC. Iceland and Norway have been specified
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