PART VII LIABILITY
General rules
203 Liability of spouse F1or civil partner.
1
Where—
a
a transferor is liable for any tax on the value transferred by a chargeable transfer, and
b
the transferee is liable for so much of the tax as does not exceed the market value of the property at the time of the spouse F2or civil partner transfer or, in a case where subsection (2) below applies the lower market value mentioned in paragraph (c) of that subsection.
2
This subsection applies where—
a
the chargeable transfer is made after the spouse F2or civil partner transfer; and
b
the property (“the transferred property”) which became the property of the transferee either remains the transferee’s property at the date of the chargeable transfer or has before that date been sold by the transferee by a qualifying sale; and
c
the market value of the transferred property on the relevant date (that is to say, the date of the chargeable transfer or, as the case may be, of the qualifying sale) is lower than its market value at the time of the spouse F2or civil partner transfer; and
d
the transferred property is not tangible movable property.
3
In this section “qualifying sale” has the same meaning as in section 131 above; and, subject to subsection (4) below, sections 133 to 140 above shall have effect for the purposes of this section as they have effect for the purposes of section 131.
4
In their application by virtue of subsection (3) above, sections 133 to 140 above shall have effect as if—
a
references to the chargeable transfer were references to the spouse F2or civil partner transfer,
b
references to the transferee’s spouse F2or civil partner were omitted, and
c
references to section 131 above were references to this section.