IHTM11133 - Procedure: special situations
To the extent to which a lifetime transfer (IHTM14000) is charity exempt the gift which constitutes the transfer of value (IHTM04024) cannot be taxed under the gift with reservation (IHTM04071) rules.
Where the taxpayers claim that the charity exemption applies to a close company transfer (IHTM14851) you should refer the case to Shares and Assets Valuation.
Where the transfer of value in favour of a charity (IHTM11112) takes the form of a loan of money or other property to the charity, then
- the value transferred is treated as attributable to the property that can be used by the borrower - IHTA84/S29 (5)
- that property is treated as given to or becoming the property of the charity provided it can be used only for charitable purposes or for the purposes of a body within IHTA84/S24 IHTA84/S25 or IHTA84/S26 or (if the property is land) IHTA84/S24A), and
- the various exceptions (IHTM11171) in IHTA84/S23 (2) to IHTA84/S23 (6) do not apply.