This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Daughter's Wedding Expenses IHT - HELP!

Yenpekkow
Posts:5
Joined:Wed Mar 20, 2019 5:53 am
Daughter's Wedding Expenses IHT - HELP!

Postby Yenpekkow » Tue Apr 02, 2019 7:10 am

My wife and I are not UK citizens, not resident in the UK, and not tax domiciled in the UK. We reside in Indonesia.
Our daughter and her boyfriend, both UK tax domiciled, will be getting married in July 2019.
It is our tradition that the parents of the bride cover all the expenses of the wedding reception, etc. This we estimate will be in the region of £40,000.
It seems we can gift our daughter a combined total of £10,000 without it being subject to inheritance tax. This leaves a sum of £30,000 that would be subject to 40% inheritance tax..
Is it possible that if we cover our daughter’s wedding reception expenses she will be liable to pay at least £12,000 tax?
There must be some way to avoid or drastically reduce this.
PLEASE HELP!

Jholm
Posts:364
Joined:Mon Mar 11, 2019 4:22 pm

Re: Daughter's Wedding Expenses IHT - HELP!

Postby Jholm » Tue Apr 02, 2019 11:17 am

There is a nil rate band of £325,000 covering chargeable transfers in the previous 7 year rolling period. The transfers to your daughter would only be charged to tax if you die within 7 years of the gift. In that event, all chargeable transfers in the 7 years prior would be accumulated and chip into the £325,000 nil rate band.

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: Daughter's Wedding Expenses IHT - HELP!

Postby maths » Tue Apr 02, 2019 4:53 pm

As non-UK domiciled (and non-resident) individuals any gifts you make of non-UK situs assets are simply outside the charge to UK inheritance tax.

You could gift cash to daughter/boyfriend for them to discharge all the expenses or you could pay the monies directly to the supplier of any wedding services.

Yenpekkow
Posts:5
Joined:Wed Mar 20, 2019 5:53 am

Re: Daughter's Wedding Expenses IHT - HELP!

Postby Yenpekkow » Thu Apr 04, 2019 7:12 am

Thank you "maths" and "Jholm" for your replies and information.

This is greatly appreciated.


Return to “Inheritance Tax, IHT, Trusts & Estates, Capital Taxes”