My wife and I want to take advantage of the 'Normal Expenditure out of Income' exemption, but I need to be certain we comply with IR rules.
This is my situation:
a) I have a current account in my name only. Into this account goes my main works pension (42% of our joint income) and there is one monthly direct debit for our Mastercard housekeeping purchases.
b) All other income and expenditure goes through my and my wife's main joint current account.
c) Our current expenditure is approx. £17K and is unlikely to significantly change (22% food and housekeeping, 12% Council Tax, 9% utilities, 12% running two cars, 6% donations and 39% on everything else).
d) Normal Income over expenditure gives a surplus of approx. £16K pa (excludes any capital implications).
I keep accurate records, which can readily be transferred onto IR form IHT403.
My question is: can we gift say £300 per month from our joint account to each of our three children by Standing Order, total gift of £10,800 pa, all definitely IHT free? Or am I missing something?
I am 81 years old and my wife is 78. We have a modest amount of savings to cover eventualities, including the possibility of Care Home fees in the future.
I would very much appreciate comments and guidance.
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