IHT403 Gifts 24 February at 5:52PM in Deaths, funerals & probate 5 replies 260 views

sheffix2

Dad died 31st October 2022 & I'm having to work out any gifts he gave within 7 years of his death. Only ones which apply were 2 gifts of £3000 each made to my brother and myself in February/March 2016 (6 years 7 months before death) Do I include details of both gifts on form IHT403 or just one given the £3000 exemption? Thanks for any help.

Keep_pedalling

You only need to declare one of them unless he made no gifts in the previous year in which case no need to declare either as the second is covered by the ability to carry over one year.

sheffix2

Is it literally anything only given "within" 7 years of my Dad's death that needs referencing? So if more was gifted in the tax year 2015/6 but outside the 7 year period it doesn't need referencing? Getting a bit stuck on this & welcome any help.

Keep_pedalling

sheffix2 said:

Is it literally anything only given "within" 7 years of my Dad's death that needs referencing? So if more was gifted in the tax year 2015/6 but outside the 7 year period it doesn't need referencing? Getting a bit stuck on this & welcome any help.

After 7 years the gifts fall out of the estate and no longer have to be declared. This can be extended to 14 years but only where large gifts into discretionary trusts are involved.

sheffix2

Thanks again. So in declaring one of the £3000 gifts which were within 7 years, form IHT403 requires details of who the gift was made to. Is there any protocol to which individual is entered on the form? 

Keep_pedalling

sheffix2 said:

Thanks again. So in declaring one of the £3000 gifts which were within 7 years, form IHT403 requires details of who the gift was made to. Is there any protocol to which individual is entered on the form? 

It would normally be done in reverse order in which the gifts were made, if made on the same day it does not really matter.