IHT403 Form for Gifts - double checking I've completed it correctly.

Rodders2409

Hello All,

I'm just completing all forms to be sent off to the relevant people in .GOV and wanted to check if I've completed the Gifts form correctly.

Box 7 is a table where you detail any Gifts made by the deceased in the past 7years. I've gone through 7years of statements from Dads bank account and correlated them to my account statements, ending up with various gifts over that time made to my brother and I, plus Grandchildren.

Column A within the table asks for the "Value of the gift at that date" and Column B asks "Exemptions or reliefs deducted (do not deduct taper relief here)".

Because there were multiple gifts within every year of the seven year period, where there was a gift greater than £3000 within a year, I have recorded a single £3000 annual allowance / relief against that entry. I've made sure that theres only one £3000 allowance per year....so basically, I've recorded 7 x £3000 allowances over 7 years in Column B.

Is that correct?  

Keep_pedalling

You have to declare any gift that is not entirely covered by an exemption so it can be done a couple of ways depending on the make up of the gifts.

Example 1.

3x £1000 , 1x £2500 2 x £5000

In this example you would declare the £5000 and £2500 gifts. The 3 x £1000 don’t have to be declared but that uses up that years annual exemption so there are no exemptions available to claim on IHT 403.

Example 2.

1x £4000, 1 x 6000 2 x £10000

In this example all gifts need to be declared with the the £3000 exemption being placed against the earliest gift. 

Rodders2409

Thanks KeepPedalling....

So, because the Table in Question 7 has a column for "Exemptions" and that column automatically impacts (debits) the original gift value in Column A, then me putting £3000 against one Gift in the year would be the same as your "Example 2".....I just wanted to make sure that the Tax guys see where I'm applying the £3000 exemption, but only applying it once per year.