Inheritance tax - Gifts

Star_Rover

Can anyone tell me if gifts (given in the previous 7 years) are treated as part of the estate or seperately which could make them liable for tax even though the estate is worth less than £325000? 

Keep_pedalling

They form part of the estate for IHT purposes so no tax due if the estate is below £325k. If the estate was in IHT territory then the estate is liable to pay the tax unless total gifts made in the prior 7 years exceeded £325k. 

Brie

It also depends on how much, how long before death and to whom the gifts are made.  So no tax for money between spouses generally and no tax if the gifts in any one years don't exceed £3k.  There are other exceptions for special occasions too.  So no tax if the gift up to £5k is to a child when they get married.

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