‘in consideration of marriage’ and IHT

Saltfish

I understand there is an additional £5000 IHT exemption for a parent to gift up to 3 months before a wedding. How is this evidenced to Inland Revenue? Is it enough for the funds to just be referenced as 'wedding gift' and given within the time period, or are their additional requirements? 

Keep_pedalling

This will only be relevant if on your death the administrator of your estate is likely have to make an IHT return. All you need to do is keep a record of your gifting and keep it somewhere your executors can easily find. If you within 7 years of the gift and a IHT return is required then it will need to be included on IHT 403 where  the exemption can also be claimed.

https://assets.publishing.service.gov.uk/media/5f60b44cd3bf7f7234487bf0/IHT403-05-20.pdf

Saltfish

But what are the criteria for an IHT exemption - only that it occurs within 3 months of the wedding and is referenced in any bank transfer as 'wedding gift' - is that sufficient? For example, does it have to be linked to specific expenditure on , for example, a marriage venue etc

mybestattempt

Saltfish said:

But what are the criteria for an IHT exemption - only that it occurs within 3 months of the wedding and is referenced in any bank transfer as 'wedding gift' - is that sufficient? For example, does it have to be linked to specific expenditure on , for example, a marriage venue etc

The legislation at Section 22 of the Inheritance Tax Act 1984 doesn't set out a specific time, before the marriage, in which the gift must be made and the HMRC guidance simply says "on or shortly before":

https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm14191

As @Keep_pedalling has said it's a matter of keeping adequate records for your executor/administrator to be sure the marriage and related gift can be identified and verified.