Can you deduct the £3k exemption from a larger gift for IHT?

VerityL22

Hello.

My mum made some gifts under the threshold, but there are assets over the threshold so IHT is due. The total estate depends on what gift value is  declared. 

I know I don't need to report small gifts under £250 or gifts in a year up to £3k.

My mum made a gift of £20k one year where she had made no other gifts either in the year before or the year of this gift, which was within 7 years of her death. 

Can I make an annual gift exemption relief deduction in the IHT403 form?

I.e. is the full £20k considered for her estate or is is £20k minus £6k (that year plus previous year exemption allowance), so £14k actual considered part of her estate for IHT? 

Cannot find clear guidance out there on this. Can you help? 

Thank you 🙏

Keep_pedalling

Yes you can deduct both available annual exemptions. Are you sure IHT is due?  When you say over the threshold are you just referring to the £325k NRB? If she was a home owner you have the residential NRB as well, and if she was a widow the transferable NRBs from her husband.