IHT gifting excess income

gravlax

This is reported to require careful record keeping and evidence that income gifting does not impact your lifestyle. If you have not started to draw any income from a SIPP, would gifting a set % of every annual withdrawal from day 1 demonstrate the gifted amount was surplus to own needs? Alernatively when eligible for State Pension, gifting that income from day 1? Would either demonstrate the income was genuinely excess for purposes of ensuring gifts were not taxed for IHT? 

Keep_pedalling

gravlax said:

This is reported to require careful record keeping and evidence that income gifting does not impact your lifestyle. If you have not started to draw any income from a SIPP, would gifting a set % of every annual withdrawal from day 1 demonstrate the gifted amount was surplus to own needs? Alernatively when eligible for State Pension, gifting that income from day 1? Would either demonstrate the income was genuinely excess for purposes of ensuring gifts were not taxed for IHT? 

Those things would show that a pattern of gifting has been established, but you (or rather your executor) is going to have to provide detailed expenditure along side that otherwise you could simply make up the shortfall from your savings. Have a look at form IHT 403 to see the level of detail needed.