Are there actually any items or personal possessions that are not subject to IHT ?
Yes, and the following HM Revenue & Customs section explains the exemption
Inheritance Tax: Extending exemption for medals and
Who is likely to be affected?
People in the armed forces, police, fire brigade, ambulance service and personnel in other
“first response” organisations and individuals recognised by the Crown for their
achievements and service in public life.
General description of the measure
The measure extends the exclusion from inheritance tax (IHT) that applies to medals and
other decorations that are awarded for valour and gallantry to all decorations and medals
awarded by the Crown or by another country or territory outside the UK to the armed forces,
emergency services personnel and to individuals in recognition of their achievements and
service in public life.
The measure will provide that all medals and decorations awarded by the Crown or by a
country or territory outside the UK to armed forces personnel, emergency services personnel
or to individuals for public service or achievement in public life will be treated as excluded
property and therefore not be subject to IHT.
Background to the measure
This measure was announced at Autumn Statement 2014.
Detailed proposal and Operative date
The revised legislation will have effect in relation to transfers of value made or treated as
made on or after 3 December 2014.
Excluded property is defined in section 6 of the Inheritance Tax Act (IHTA) 1984. Section
6(1B) says that a decoration or award is excluded property if it was awarded for valour or
gallant conduct and it has never been the subject of a disposition for a consideration in
money or money’s worth.
Legislation will be introduced in Finance Bill 2015 to treat all medals and decorations
awarded by the Crown or a country or territory outside the United Kingdom to armed forces
personnel, emergency services personnel and individuals for achievements and services in
public life as excluded property.