The commentary below discusses the impact on inheritance tax planning and Wills on the breakdown of a marriage or civil partnership.
For an overview of the income tax, capital gains tax and inheritance tax implications of a breakdown of a marriage or civil partnership, as well as a summary of the other articles on this subject, see E5.115.
Impact on inheritance tax planning
As indicated in E5.115, inheritance tax is not a significant tax as far as the breakdown of a marriage or civil partnership is concerned.
Since transfers between spouses and civil partners are exempt1 (see I3.332), it may be worthwhile anticipating when the final order (formerly known as the decree absolute or dissolution of the civil partnership) might be made, so that assets can be transferred whilst no inheritance tax charge can arise.
When the exemption is lost, further relief is provided by IHTA 1984, ss 10, 11, as summarised in E5.115.
Where a particular transfer does not
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