Commentary

I12.706 Gifts out of income

IHT, trusts and estates

I12.706 Gifts out of income

I12.706 Gifts out of income

The inheritance tax exemption for normal expenditure out of income1 can apply to gifts both directly to another individual and to gifts into trust. Accordingly those with substantial annual income may be able to place funds into trust, structured as normal expenditure out of their after tax income.

For further information see I3.325.

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