Completing IHT403 Gifts

Spinandyoga

Hi I have just started to complete IHT forms. FIL gifted £5k to 2 relatives this tax year and has now died. His estate is liable to IHT. When completing the form can anyone advise where I claim on the form the £3k allowable for 25/26 and 24/25 ( he didn’t use his allowance in the previous year) . He was also giving small regular gifts out of income which are more than covered by the exemption for not affecting his standard of living. Can I claim the balance of the £10k gifted through that exemption? Thank you

Keep_pedalling

The gifts have to be declared on supplementary form IHT 403.

For the first £5k gift you can claim the 24/25 carried forward exemption plus £2k of the 25/26 exemption. For the second gift you can only claim the remaining £1k leaving £4k that will be subject to IHT, unless you have any spare excess income in the last year tat you can use.

Do you have detailed records for all income and expenditure for the last 7 years. You will need this to show that excess income was available and that a pattern of such giving had been established.