IHT - gift out of income

Jeremy535897

In addition, income for inheritance tax purposes is not necessarily the same as income for income tax purposes. One obvious example is deemed income, which by definition cannot be given away.

Ciprico

There are differing views on my original question... 

Our specific case is parent gave 20k six years ago

We recently learned the taper does not apply so we're wondering if part of this gift which genuinely can be proven to come from unused income would be applicable.

It seems not as it is not part of a pattern of gifts. .. 

Keep_pedalling

Ciprico said:

There are differing views on my original question... 

Our specific case is parent gave 20k six years ago

We recently learned the taper does not apply so we're wondering if part of this gift which genuinely can be proven to come from unused income would be applicable.

It seems not as it is not part of a pattern of gifts. .. 

Well it is fairly simple, did your parent have £20k more income than expenditure and if so can you prove it after all this time? Claiming a single year may raise alarm bells with HMRC because if someone had such excess income why would they not exploit that allowance in subsequent years.

Jeremy535897

A one off gift would only be likely to qualify if there was clear intention at the date of the first gift to make a series of them, but then the donor could not make the further gifts (for example the donor died).