IHT403 Gifts in the last seven years and Gifts as part of normal expenditure out of excess income

OlManRiver

Hi everyone,

I'd really appreciate some guidance regarding IHT403, specifically relating to gifts made in the last 7 years and these gifts falling within a pattern of normal expenditure out of excess income.

1) Do you have to list gifts made out of excess income in the Gifts made within 7 years before death section, and then repeat these values in the Gifts made out of surplus income section? If so, do I list it as "Gifts made out of surplus income" in the Type of relief or exemption column.

2) What about gifts that are made within the £3000 maximum allowed per year, or gifts made up to £250 per person? Do these need to be listed also in the Gifts made within 7 years before death section? If so, do I list it as "Part of £3000 annual limit" in the Type of relief or exemption column.

3) Do birthday/Christmas gifts also need to be listed also in the Gifts made within 7 years before death section? If so, do I list birthday/Christmas in the Type of relief or exemption column.

Many thanks for you help. 

kipperman

This is what our accountant advised - For all the gifts from income I totalled up for each year and then put that amount in the gifts made box in section 22 ( right at the end on page 8). As regards your question 2 and 3, again we were advised to list everything, but obviously claim the 0 net value in column C. There will be others far more knowledgeable than me but will at least give you a start.

Keep_pedalling

OlManRiver said:

Hi everyone,

I'd really appreciate some guidance regarding IHT403, specifically relating to gifts made in the last 7 years and these gifts falling within a pattern of normal expenditure out of excess income.

1) Do you have to list gifts made out of excess income in the Gifts made within 7 years before death section, and then repeat these values in the Gifts made out of surplus income section? If so, do I list it as "Gifts made out of surplus income" in the Type of relief or exemption column.

No, they only go in the second one.

2) What about gifts that are made within the £3000 maximum allowed per year, or gifts made up to £250 per person? Do these need to be listed also in the Gifts made within 7 years before death section? If so, do I list it as "Part of £3000 annual limit" in the Type of relief or exemption column.

They don’t need to be included.

3) Do birthday/Christmas gifts also need to be listed also in the Gifts made within 7 years before death section? If so, do I list birthday/Christmas in the Type of relief or exemption column.

Many thanks for you help. 

Unless we are talking about extravagant pressies they don’t need to be included either.

OlManRiver

Thank you kipperman and Keep_pedalling - this is very helpful.