IHT Exempt Gifts

[zaxtab]

If I make regular annual gifts of £6k to my grandchildren, am I correct that these would be exempt from IHT, by virtue of the £3k Ann.allowance and £3k coming from income(accepting this is ‘spare’ income)....and if this is the case can these gifts be omitted from form IHT205?

[pawncob]

Yes.

[Lee Young]

You can, but if you want the transfers to be exempted under the gifts out of surplus income route rather than simply using up the nil rate band as gifts made within seven years of death, then you should use IHT400