Life interest

I understand that the estate duty surviving spouse exemption may apply making any lifetime transfer pointless as no inheritance tax would be payable on the death of J.
Readers' comments are invited on how to establish whether the exemption applies and the meaning of 'competent to dispose' in relation to life interests (FA 1894 s 22(2)).
Query T16 888 — Unsettled.

Reply by Digby Bew:

In the first instance Unsettled could usefully refer to the flowchart at HMRC's Inheritance Tax Manual IHTM04342 to determine the possible application of the estate duty surviving spouse exemption.
The exemption (at IHTA 1984 Sch 6 para 2) exists to provide relief against the double charge to tax that would otherwise arise from the changes made to the operation of spouse relief in 1974 following the introduction of capital transfer tax. Prior to 1974 estate duty was charged on the...