Inheritance tax

anneeapplecat

Can I gift  £3000 each to my daughter and her husband within the annual exemption rules for IHT, 

tacpot12

It depends on whether you have given any gifts in the previous tax year. If gave nothing away in the previous tax year, you can carry forward your annual allowance of £3000, so you could give them each £3000 and there would be no IHT to pay.

This is confirmed here: How Inheritance Tax works: thresholds, rules and allowances: Rules on giving gifts - GOV.UK

Albermarle

anneeapplecat said:

Can I gift  £3000 each to my daughter and her husband within the annual exemption rules for IHT, 

Be clear also that you can give them a lot more money than that with no tax to pay if;

1) Your estate will not be subject to IHT anyway
2) You live 7 years after making the gift

Even if your estate was likely to be subject to IHT and you die within 7 years, at worst you are only back in the same position as you would have been before making the gift.

Giving money away can never mean you will pay more tax than you would by not giving it away.

Jeremy535897

Albermarle said:

anneeapplecat said:

Can I gift  £3000 each to my daughter and her husband within the annual exemption rules for IHT, 

Be clear also that you can give them a lot more money than that with no tax to pay if;

1) Your estate will not be subject to IHT anyway
2) You live 7 years after making the gift

Even if your estate was likely to be subject to IHT and you die within 7 years, at worst you are only back in the same position as you would have been before making the gift.

Giving money away can never mean you will pay more tax than you would by not giving it away.

That is usually, but not always the case.Consider this, where there are no children.
Spouse 1 gifts £400,000 estate to cousin and dies within 7 years. There is a tax bill of about £30,000, potentially subject to taper relief. Spouse 2 dies with estate of £200,000, no tax. But if:
Spouse 1 gifts £300,000 to cousin and dies within 7 years, no tax, leaving the remaining £100,000 to spouse 2. Spouse 2 dies with estate of £300,000. No tax.

sheramber

anneeapplecat said:

Can I gift  £3000 each to my daughter and her husband within the annual exemption rules for IHT, 

£3000 is the total, not each.