completing Form iht403

[Jononothing]

the hmrc site says that gifts out of income are treated as given by each individual - ie not pooled as between husband and wife.
I can separate out my income from my wife's but how are the family expenses which are paid from our joint account, split between us so that my element can be entered in the 403, when I gift money to my daughter?

[AnthonyR]

The table on page 6 of the IHT403 is intended to be a guide to allow an inspector or the executors to identify whether gifts out of income should be exempt or not.

In terms of identifying joint expenditure, it's a bit artificial to try and identify how the mixed funds are actually spent once they go into joint account, but depending on how your family finances are set up I would either look at a simple 50:50 split or if there is significantly uneven split of income look to apportion the expenses according to your income split.

In reality it comes down to the arrangement that you have between you - however it's only really going to become relevant if the gifts out of income are close to resulting in exceeding your excess income.