IHT Relief on Politicasl Donations

[Raheen]

We are sorting out an aunt's estate. It appears that she has made substantial donations to the Brexit Party.
I understand that donations to political parties are grouped with donations to registered charities & other entities
wrt IHT & can be exempt.

But I'm not sure the Brexit Party is really a political party. I have just read that it it is, in fact, a limited
company, with just one shareholder. I've had a look at the Companies House info & this appears to be the case.

Do readers think that we'll be able to claim the exemption on this payment before the 40% kicks in on an estate
well over £350K (The full rigour of the Form 400 & all its horrid offsprong applies).
Thoughts, please

[PinkDalek]

The page linked below takes one to the June 2017 General Election (see next point for relevance):

https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm11197 (noting UKIP are on that list)

I would look here which suggests the donations fail:

https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm11196

I’d speak to the helpful people at HMRC Trusts & Estates to see if what I’m suggesting is correct:

https://www.gov.uk/government/organisations/hm-revenue-customs/contact/probate-and-inheritance-tax-enquiries

Alternatively, a study of the entire HMRC Manual on the subject may contain something of interest:

https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm11191

You mention the estate is well over £350k (the current relevant amount is £325,000) but are silent on whether the Aunt ever had a spouse etc. This area has been gone into recently and I can link to the thread if of interest (but not from this piece of equipment).

[Raheen]

No spouse. Never married, no offspring.".
Yes £325k, of course. The only relief I've identified is "Donations from Net Income", which doing on Form 403.

It's our concern that the status of the Brexit Party seems doubtlful...

[PinkDalek]

It's our concern that the status of the Brexit Party seems doubtlful...

Yes and that is why I directed you here:

Gifts to political parties: requirements for a qualifying political party
https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm11196

A political party qualifies for exemption if at the last general election preceding the transfer either

two members of the party were elected to the House of Commons, or

one member of the party was so elected and not less than 150,000 votes were given to candidates who were members of that party

These alternative qualifications are the minimum requirements.

They didn't exist in 2017 (nor do I think they qualified as above last December).

See also page 75 of the:

Guide to completing your Inheritance Tax account
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/864520/Guide_to_completing_your_Inheritance_Tax_account__IHT400_notes__-_English.pdf