Are any beneficiaries exempt from the tax?

Thankfully yes.  Gifts can be made to certain people and organisations without having to pay any tax. These gifts, which are exempt whether they are made during your lifetime or in your will, include gifts to:

  • A spouse or civil partner, even if you're legally separated (but not if you've divorced or the civil partnership has dissolved), as long as you both have a permanent home in the UK
  • UK charities
  • Some national institutions, including national museums, universities and the National Trust, and
  • UK political parties