Gifts or bequests are exempt from taxation if they are made to the following:

To a spouse, except where the person is living in the UK and the spouse is living abroad (in which case the exemption may vary) or the gift or bequest is not immediately in favour of the spouse, or is dependent on a condition not satisfied within a year. However, surviving the donor of the bequest does not apply as an allowable exemption.

A charity established with the UK
A political party, usually one represented in the House of Commons
A national museum, university, the National Trust and other specific bodies

Gifts and bequests of national heritage property and land are exempt when made to a suitable non-profit body and Housing Association, respectively. These are bodies listed in the Schedule 3 Inheritance Tax Act 1984.

If the terms are incomplete or conditional, the gifts and bequests are not exempt, nor are they exempt if they can later be used for purposes which are not charitable or for other non-exempt uses.

Bodies listed in Schedule 3 Inheritance Tax Act 1984

The National Gallery
The British Museum
The National Museums of Scotland
The National Museum of Wales
The Ulster Museum
The Historic Buildings and Monuments Commission for England
The National Trust for Places of Historic Interest or Natural Beauty
The National Trust for Scotland for Places of Historic Interest or Natural Beauty
The National Art Collections Fund
The Trustees of the National Heritage Memorial Fund
The National Endowment for Science, Technology and the Arts (with effect from 2 July 1998)
The Friends of the National Libraries
The Historic Churches Preservation Trust
The Nature Conservancy Council for England
The Nature Conservancy Council for Scotland
The Countryside Council for Wales

Any other similar national institution, which exist wholly or mainly for the purpose of preserving for the public benefit a collection of scientific, historic or artistic interest and which is approved for the purposes of this Schedule by the Commissioners Inland Revenue

Any museum or art gallery in the United Kingdom which exists wholly or mainly for that purpose and is maintained by a local authority or university in the United Kingdom
Any library the main function of which is to serve the needs of teaching and research at a university in the United Kingdom
Any local authority
Any Government department (including the National Debt Commissioners)
Any university or university college in the United Kingdom
A Health Authority, National Health Trust or similar health service body, within the meaning of section 519A of the Income and Corporation Taxes Act 1988