gifts

[riccardob]

Hello,

If gifts are made from a donor when he is not domiciled in uk for tax purposes but then said donor becomes uk domiciled and dies within seven years of said gifts, are those gifts exempt
from IHT as when they were made the donor was not domiciled?

Many thanks

[AGoodman]

Yes. The gift is not a transfer of value so just falls out of account.

(the reverse is also true and a gift remains chargeable if somebody makes a gift then loses their UK domicile).

[maths]

I agree with AGoodman.

The death of the donor within 7 years of the gift "triggers" a possible IHT charge but the status of the gift is determined at the date of the gift. At that time the donor was non-UK domiciled and hence the property gifted is excluded property falling outside the IHT regime.