IHT and gifts

bouicca21

This may be a silly question but I genuinely don't know the answer.

If I were to give cash to my children, over the £3,000 limit, and did not survive the 7 years, how would the government know?

Aegis

It's the requirement of your executor to file an accurate IHT return form. In that they must identify all major outflows within the last seven years and explain them. Failing to do so is tax evasion, which is not a route most people choose to go down as HMRC can drill into the returns in as much depth as they like before probate is granted.

clivep

Don't forget that if you have more income than expenses then you can make regular gifts out of surplus income. Unlike other gifts over the £3,000 annual limit, these are exempt from inheritance tax when given within the last 7 years before death.