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That £250 gift exemption...
Teabagger
Posts: 8 Forumite
in Cutting tax
An aging relative with an estate currently sitting above the available NRB wants to increase the amount they efficiently give away during their lifetime...
They understand that creating some PETs may be where the real value lies, but are less clear about the possible overlap between the available gift exemptions...
i.e. a total of £3k pa, can be given under the 'gift allowance' and unlimited £250 gifts can also be made (presumably no more than £250 per recipient per annum, and not to any recipient who has also received 100% of the £3k annual allowance).
They are also aware that regular gifts out of surplus income could be worth looking into but that they must be properly documented as such and may need to run for at least 2 years prior to death to establish a pattern. e.g. a regular monthly payments into a savings account.
Presumably, birthday and Christmas gifts are unlikely to be described as regular gifts out of surplus income albeit they may be made annually!
My question therefore is would HMRC ever consider modest/readily affordable birthday and Christmas gifts as 'normal expenditure' or are they something that needs to be 'accounted for' within one of the main gift exemptions (i.e. within the £250pp allowance or if above this level, within the overall the £3,000 per annum total allowance)?
They understand that creating some PETs may be where the real value lies, but are less clear about the possible overlap between the available gift exemptions...
i.e. a total of £3k pa, can be given under the 'gift allowance' and unlimited £250 gifts can also be made (presumably no more than £250 per recipient per annum, and not to any recipient who has also received 100% of the £3k annual allowance).
They are also aware that regular gifts out of surplus income could be worth looking into but that they must be properly documented as such and may need to run for at least 2 years prior to death to establish a pattern. e.g. a regular monthly payments into a savings account.
Presumably, birthday and Christmas gifts are unlikely to be described as regular gifts out of surplus income albeit they may be made annually!
My question therefore is would HMRC ever consider modest/readily affordable birthday and Christmas gifts as 'normal expenditure' or are they something that needs to be 'accounted for' within one of the main gift exemptions (i.e. within the £250pp allowance or if above this level, within the overall the £3,000 per annum total allowance)?
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