What are the available inheritance tax exemptions?
For financial advisers only01 November 2016
- There's a £3,000 yearly inheritance tax (IHT) exemption. This can be rolled over to the following year if it isn't used - up to a maximum of £6,000 per individual.
- Up to £250 can be gifted to any number of individuals each tax year. This can’t be used in conjunction with any other exemption.
- Gifts can be given on marriage up to:
- £5,000 from each parent;
- £2,500 from each remote relative (a grandparent, for example); and
- £1,000 from any other individual.
- The 'normal expenditure out of income' exemption might apply.
- Gifts to a UK domiciled spouse/civil partner are also exempt.
To find out more about IHT exemptions take a look at HM Revenue & Custom's Inheritance Tax Manual.
This information is based on our understanding of current, taxation law and HMRC practice, which may change.