Roger19

Thank you for the information and the quick response. So for absolute clarity: In a case where the IHT threshold is exceeded, and regular gifts of £250 are made to a dependant out of surplus income, which exceed £3000 per annum in the seven years before death, the rule is that IHT would be payable on the amounts over £3000. Have I got that right please? (I don't usually!).

Possibly a dumb question, but does the £3000 maximum allowance apply to the regular £250 small gifts? In other words, if I gave 13 gifts of £250 from my income in one year, would the last one not be exempt from tax?