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Where Taxpayers and Advisers Meet
Tax Insider Tip: Using The Marriage Allowance For IHT
28/04/2014, by Tax Insider, Tax Tips - General Tax
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If someone is getting married then there are certain exemptions for gifts made to them “in consideration of” the marriage.

Note that these gifts should be given at the time of the marriage, and they must be conditional on the marriage actually taking place.

If it is one of your own children who is getting married, then you can give £5,000 to your child and their new spouse. So assuming that each of the individuals getting married has two parents still living, each of those parents can give a gift of £5,000 to the couple getting married, so you end up with each of the two families able to give £10,000, which is a total of £20,000 across both families.

Grandparents of the people who are getting married can also do the same but the exemption is only half and therefore each grandparent can gift £2,500 to the couple getting married.

For anybody other than parents or grandparents of the couple, the exemption is £1,000 for a gift to the couple.

Note that these exemptions are in addition to the annual £3,000 referred to above.

About The Author

The above article is taken from 'Tax Insider,' TaxationWeb's own publication specifically for taxpayers and their advisors. 'Tax Insider' is a monthly magazine containing numerous tax tips, articles, questions and answers from leading tax experts, aimed at helping taxpayers to save tax and reduce their liabilities.

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