Giving is receiving? Part 2
As a continuation from Clare’s article last week, there are some additional exemptions and reliefs that are available when making lifetime gifts.
Gifts in consideration of marriage
As we enjoy the summertime, lots of us are also celebrating family weddings. If your son or daughter is getting married, each parent can gift £5,000 which is exempt from inheritance tax. If you are a grandparent or remoter relative, you can gift £2,500 and in all other circumstances £1,000.
Dispositions for maintenance of family
You can also make gifts for the maintenance of your family during your lifetime which are not classed as Potentially Exempt Transfers (PET) or chargeable transfers in the following circumstances:
- By one spouse for the maintenance of the other.
- By one spouse for the maintenance, education or training of a child of either spouse
- By anyone for the maintenance, education and training of a child not in the care of a parent or an illegitimate child
A child includes step or adopted children. The period in which those payments can be made are up to 5th April after the child has attained the age of eighteen or until the child ceases full time education or training.