Commentary

I3.324 Small gifts exemption

IHT, trusts and estates

I3.324 Small gifts exemption

I3.324 Small gifts exemption

Outright gifts made to any one person in any one tax year are exempt if the value or values transferred by them do not exceed £250. The value transferred is not grossed up for this purpose1. The intention of this provision is to take small gifts outside the ambit of IHT.

It is an 'all or nothing' provision so that a transfer of £251 is not exempt under this rule at all (although it may be under the annual £3,000 exemption). This rule also means that where the only transfer of value made is an outright gift

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial