Section 626 Exception for outright gifts between spouses or civil partnersF2

United Kingdom

(1)

The rule in section 624(1) does not apply in respect of an outright gift—

(a)

of property from which income arises,

(b)

made by one spouse to the other F1or one civil partner to the other , and

(c)

meeting conditions A and B.

(2)

Condition A is that the gift carries a right to the whole of the income.

(3)

Condition B is that the property is not wholly or substantially a right to income.

(4)

A gift is not an outright gift for the purposes of this section if—

(a)

it is subject to conditions, or

(b)

there are any circumstances in which the property, or any related property—

(i)

is payable to the giver,

(ii)

is applicable for the benefit of the giver, or

(iii)

will, or may become, so payable or applicable.

(5)

“Related property” has the same meaning in this section as in section 625.

Annotations

F1: Words in s. 626(1)(b) inserted (5.12.2005) by The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1, 189(2)
F2: Words in s. 626 heading inserted (5.12.2005) by The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1, 189(3)

F1: Words in Pt. 5 Ch. 5 heading inserted (with effect in accordance with Sch. 10 para. 21 of the amending Act) by Finance Act 2018 (c. 3), Sch. 10 para. 3(2)