Timing of 7 Year Rule for Gifts for IHT

bsf22 Forumite Posts: 5
Second Anniversary First Post
I’m intending making a sizeable cash gift to a relative.  I hope to survive the 7 years making this gift exempt from IHT!  However, if I don’t, when is the 7 year period calculated from?  Is it from the precise date of the gift or is it just considered in the relevant tax year?


  • purdyoaten2
    purdyoaten2 Forumite Posts: 3,797
    Seventh Anniversary 1,000 Posts Photogenic Name Dropper
    It is the actual date that the gift is received. 

    How large is the gift? Will your estate definitely exceed the IHT threshold?

    (Ha sido divertido)
  • Keep_pedalling
    Keep_pedalling Forumite Posts: 14,813
    Eighth Anniversary 10,000 Posts Name Dropper Photogenic
    It is from the date of the gift. If you are currently healthy then you could cove the risk by term life insurance for the amount of IHT the failed PET would create.  
  • bsf22
    bsf22 Forumite Posts: 5
    Second Anniversary First Post
    Thanks for clarification.
    Gift will be in the region of £100k.
    My estate will definitely exceed the IHT threshold
    I’ll look into the suggestion of term life insurance.
    Thanks again.
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