IHT on gifts

Can the £3,000 annual exemption be used to reduce the taxable amount on gifts over the £325,000 IHT threshold? e.g. if I receive a gift worth £328,000 (such as a half share in a house), and assuming the donor did not give any other gifts in that or the previous tax year and dies within the next 7 years, can I apply the £3,000 annual exemption so that the taxable amount is £0 (i.e. IHT threshold of £325,000 plus the £3,000 annual exemption)?

Hi,

No. the £3000 gift per annum is so that this is not included when working out the value of an estatec.

Thank you.

Hi can both parents give a 3k gift 3k to 1 child from one parent and and 3k from other parent to other child and not affecr thr £325k threshold

Hi,

Please contact the Inheritance Tax team for advice.

Inheritance Tax: general enquiries

Thank you.