When does a gift happen for IHT purposes?

Marcon

My_perfect_cousin said:

A question regarding IHT taper relief on gifts. Apologies if this has just been answered by the previous post. If a gift of cash (let's say £25,000) is made 3 years before a person dies. On the person's death, does the £25,000 gift simply reduce the nil rate band by £25,000 to £300,000? Or is the 32% relevant? Essentially, how does the taper relief work regarding IHT? thanks

See https://www.gov.uk/inheritance-tax/gifts

km1500

yes it reduces to 300k no taper relief

however, if you gifted say 350k then 325k would be used to reduce to nil rate band to zero and the remaining 25k would have taper relief