Cash Gifts (IHT400 and IHT403)

DancingBadger

A simple question:

Two gifts totalling £60,000 were made in May 2022.  Please can someone tell me if I should declare £54,000, taking into account the annual gift exemption (backdated by one year)?

probate_slave

I don't think you can amalgamate the two gifts unless they were to the same person on the same day.

IHT403 is structured to require date, donee, type of relief, value etc for each gift. Therefore I would report them separately in full, and claim £3,000 annual exemption against each. Make it clear that one AE is for 2022/23 and the other for 2021/22 unused.

Keep_pedalling

probate_slave said:

I don't think you can amalgamate the two gifts unless they were to the same person on the same day.

IHT403 is structured to require date, donee, type of relief, value etc for each gift. Therefore I would report them separately in full, and claim £3,000 annual exemption against each. Make it clear that one AE is for 2022/23 and the other for 2021/22 unused.

The first gist would use both allowances up you can deduct £6k from that the second should be declared in full. 

DancingBadger

The gifts were made to two people on the same day - £30,000 each.  

At the moment, I've listed them separately with the names of the recipients and put £27,000 against each name, taking into account the £3,000 unused gift exemption for the year prior to the year in which the two gifts were given.