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Where Taxpayers and Advisers Meet

Gifts from Capital?

Posts: 3
Joined: Sat Mar 24, 2018 12:34 am

Gifts from Capital?

Postby Iris784 » Sun Apr 15, 2018 1:01 am

Is it ever legitimate to make gifts from capital, that are free from IHT?

I appreciate that gifts can be made from excess income, but if an individual typically disposes of shares to create an "income pool" from which they then make gifts, can those gifts be free from IHT (assuming that the annual gift exemption limit of £3,000 Is already utilised?

Many thanks

Lee Young
Posts: 2655
Joined: Wed Aug 06, 2008 3:26 pm

Re: Gifts from Capital?

Postby Lee Young » Mon Apr 16, 2018 12:01 pm

I think the simple answer is no, as the usual IIHT rules apply - i.e. after seven years, yes, or to a spouse or charity or political party, then yes.
Lee Young
Solicitor, Chartered Tax Adviser and Trust and Estate Practitioner

Partner, Frettens LLP
01202 491701

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