Peter Marshall
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IHT - Gifts out of Income
A question re gifts out of income. IHTM14255 - '...allowing for all gifts forming part of their normal expenditure, the transferor must have been left with enough income to maintain their usual standard of living.' Should capital expenditure be excluded from calculating 'enough income? Examples of capital expenditure could be building a conservatory, or significant maintenance costs such as expensive roof repairs or replacing drains. Thank you.