Timing of 7 Year Rule for Gifts for IHT

bsf22

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

It is the actual date that the gift is received. 

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

Keep_pedalling

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

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.