Section 18 Transfers between spouses or civil partners.F8

A transfer of value is an exempt transfer to the extent that the value transferred is attributable to property which becomes comprised in the estate of the transferor’s spouse F1or civil partner or, so far as the value transferred is not so attributable, to the extent that that estate is increased.

If, immediately before the transfer, the transferor but not the transferor’s spouse F2or civil partner is F3a long-term UK resident, the value in respect of which the transfer is exempt (calculated as a value on which no tax is chargeable) shall not exceed F4the exemption limit at the time of the transfer, less any amount previously taken into account for the purposes of the exemption conferred by this section.

For the purposes of subsection (2), the exemption limit is the amount shown in the second column of the first row of the Table in Schedule 1 (upper limit of portion of value charged at rate of nil per cent).

Subsection (1) above shall not apply in relation to property if the testamentary or other disposition by which it is given—

but paragraph (a) above shall not have effect by reason only that the property is given to a spouse F6or civil partner only if he survives the other spouse or civil partner for a specified period.

To the extent that the value transferred by a transfer of value made on the death of a member of a pension scheme is attributable to the member’s notional pension property—

For the purposes of this section, property is given to a person if it becomes his property or is held on trust for him.