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Where Taxpayers and Advisers Meet

Gifts out of income or PET's

Uther
Posts:9
Joined:Mon Oct 30, 2017 8:45 pm
Gifts out of income or PET's

Postby Uther » Fri May 06, 2022 11:01 am

Hi,

After taking all exemptions into account, NRB, TNRB, RNRB & TRNRB the estate will not be liable to IHT.
Gifts were made out of income and income / expenditure records kept.

However even if all the gifts over the previous 7 year period were added to the estate, IHT would still not be payable.

As the gifts out of income would have to be “claimed” and may be subject to scrutiny and queries,
would it be simpler / advisable just to declare the gifts on IHT403 as PET’S or am I missing something?

AGoodman
Posts:1738
Joined:Fri May 16, 2014 3:47 pm

Re: Gifts out of income or PET's

Postby AGoodman » Fri May 06, 2022 4:48 pm

If there's no tax anyway, I wouldn't expect the gifts to be scrutinised. HMRC would (probably) appreciate that it makes no difference therefore not bother.

Personally, I'd claim the exemption. It doesn't take long and then you have completed the form correctly.


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