The Phizackerley Case
This case has received widespread publicity. However the circumstances were particular and the decision of HM Special Commissioner of Taxes only applies to couples in this situation. In fact the consequences can be completely avoided with the correct advice about writing your wills.
The Phizackerley case is unusual in that a gift from the husband to the wife was deemed to have been made not some time after the purchase of the house (as is common when one owner gifts a share to someone else) but on the actual purchase of the house in joint names (because Mrs Phizackerley had no income or capital of her own, so could not have funded the purchase of the house).
If you are in this situation or one partner has gifted his/her share of a property to the other, great care must be taken in drafting your wills in order for any debt arising on the first death to be valid for Inheritance Tax purposes. The Moneta Partnership Ltd can steer you through this potential minefield.