For a number of years my wife and I have regularly used our £3k Annual IHT gift allowance to to invest for our 5 grandchildren ,...ie £6k equally divided each tax year,sometimes on different months of the tax year.
This tax year 2019/2020 I only am considering,in addition to the above allowance that I also give a further £3k gift amongst the grandchildren to come from my income.
In this situation can I now consider that the previous annual gift £3k can be perceived as coming from income rather than capital,being on a regular basis,and that i could continue to make gifts(£6K = £3k+£3k) on this basis in future years.
If I am able to do this,it would obviously mean my earlier annual capital gifts(£3k) would each translate into ‘zero’ for those years.
Is the following acceptable
This year A(me) = £1.8k to a,£1.8k to b,£1.8k to c,£0.3k to d and £0.3k to e..........total £6k
B(my wife) = £1.5k to d, and £1.5k to e.........total £3k
and same in future years
Previous years A and B distribute £3k each among a,b,c,d and e.,as gifts from capital,but in my case in view of above to be now considered as gifts from income.
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