Incidence of tax on specific gifts

Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance

Incidence of tax on specific gifts

Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance
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What is a specific gift?

A specific gift, where the term refers to a disposition by Will, is generally understood to be a gift of a defined asset, such as a gold watch. A pecuniary legacy of a defined amount is also a specific gift. Inheritance tax legislation defines a specific gift negatively as meaning ‘any gift other than a gift of residue or of a share in residue’. This is somewhat circular since residue is what is left after debts, expenses and legacies have been paid. Nevertheless it is clear that a specific gift is a particular item or quantified amount, whereas a residuary gift is part or all of what is left. If the gift is a share of residue it is defined as a division, fraction, or percentage of an unspecified amount.

Specific gifts include the following:

  1. •

    a single personal or household item eg a diamond ring, a painting, a motor vehicle

  2. •

    a collection of items eg a stamp collection, all household furniture, a library of

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