Gifts in the 7 years before death

Did they give away money or property in the 7 years before they died?IHT403 box 1

Yes No

Include cash, a share of a house, money to help someone buy a home, and premiums they paid on a life policy for someone else. You can leave out small gifts of £250 or less to any one person in a tax year.

GiftsIHT403 box 7

Use the £3,000 annual exemption for each tax year?IHT400 Notes, IHT403

Yes No

Each tax year's £3,000, plus one unused year carried forward (IHTA 1984 s19). We assume the gifts listed are all they gave in those years.

Their income and spending in each tax year with a gift out of incomeIHT403 boxes 20 to 22

Gifts are exempt as normal expenditure out of income only if they were regular, came from income and left enough to live on (IHTA 1984 s21). HMRC needs the figures for each year. The exempt amount for a year can't be more than its surplus income.

Are you claiming any gift as normal expenditure out of income?IHT403 box 6

Yes No

Have the people who received the gifts authorised you to deal with HMRC about any tax on them?IHT403 page 2

Yes No

Who HMRC should contact about any tax on the giftsIHT403 page 2

Total given to their husband, wife or civil partner in the 7 years before death (optional)

These are free of tax, but they count when deciding whether the estate needs an IHT400 (IHTM06019).

Did they make a gift into a trust, or another gift that was taxed when made, in the 7 years before the earliest gift listed?IHT403 box 18

Yes No

Did they create a trust, or add to one?IHT403 boxes 2 and 3

Yes No

Did they give something away but keep using it, such as a home they still lived in?IHT403 boxes 8 to 11

Yes No

Did they use something they once owned or helped someone else buy, or pay Income Tax on pre-owned assets?IHT403 boxes 13 to 15

Yes No

Did they pay premiums on a life policy for someone other than their spouse?IHT403 box 4

Yes No

If yes, list the premiums paid in the 7 years as gifts above, with any exemption, and keep the policy and any trust deed for HMRC.

Did a trust they could benefit from end during their life?IHT403 box 5

Yes No

Gifts in the 7 years before deathSchedule IHT403