IHT403 do charitable donations count as gifts?

vic_brewer

I’m working through IHT forms for my late dad’s estate, I’m on the schedule about gifts - IHT103. My dad gave me and my children regular monthly gifts over the years, and always used to say to me “this is a gift out of my taxed income, so you won’t have to pay tax on it”.
I’m trying to see if these gifts in the last 7 years of his life can be stated as “part of normal expenditure out of income”, and thus not included in IHT calculations.

So, if his income was 50k and his expenditure was 30k, he had a surfeit of £20k.
He gave me £20, but also gave £5k to charity. My question is where I should be including that £5k to charity?
e.g. should I have included the Charitable Donations in the expenditure table (so his expenditure was really £25k), so surfeit = £15k and thus I can’t claim that all of my £20k gift was out of normal expenditure?
Thanks for help – the forms are due in today. Oops.

xylophone

Gifts to charity are exempt and could have come from anywhere, including capital.

Therefore these gifts do not reduce the surplus income available for the regular gifts exemption.



Read very carefully the notes for IHT 403 relating to gifts to charity which need to be listed but are exempt from IHT. You claim exemption.

and see box 7.

https://www.litrg.org.uk/tax-guides/bereavement/what-inheritance-tax

What gifts are exempt from IHT during your lifetime and on death?

Gifts to charities

You can make IHT exempt gifts to most UK charities or to registered community amateur sports clubs. This exemption also covers qualifying charities established in the EU and some other countries.