ÀÏ˾»úÎçÒ¹¸£Àû

Transfers between spouses (or civil partners) where the transferor is long-term UK resident (LTUKR) but the transferee spouse is not, benefit from a limited spousal exemption.

Exempt transfers of up to the nil rate band (currently £325,000) can be made from a LTUKR transferor to their spouse who is not LTUKR¹. The exemption is linked to the nil rate band and will change as the nil rate band changes.

The limit is before grossing but with a deduction for any amount previously taken into account for the purpose of the exemption (it is a lifetime allowance and is not refreshed like the nil rate band).

Once the exemption limit has been reached, any excess is treated as a potentially exempt transfer (PET). The spouse exemption is applied first and the potential exemption afterwards; there is no choice as to priority. However, in respect of domicile (and there is no reason to believe that this will be different where LTUKR status applies instead) HMRC says