I crystallised my SIPP this summer and therefore had money to give away. This led me into having to look into Potentially Exempt Transfers so I am wanting to make sure that I keep good records for my executors in case I don't last 7 years.
I see that the IHT403 form has only 15 rows i.e. only 15 PETs can be recorded. As I now know about PETs I will makes sure that I use the £3000pa allowance, make as many £250 gifts as I am allowed and record any charity gifts I make. Over the next 7 years these will amount to many more than 15. The form does not say "continue on an extra sheet if necessary" or anything.
So where can I get some guidance on whether we not expected to report some gifts ( none of the £250s for example ) ? Also, for example, whether there's a value at which a charitable donation becomes reportable.
ma1co1m
IHT and gifts
-
Ma1co1m
- Posts: 38
- Joined: November 5th, 2016, 11:14 pm
Re: IHT and gifts
OK, I think I have found some of the answers on the IHT400 notes. It would appear that any gifts wholly covered by the £3000pa exemption do not need to be recorded, nor do any £250 ones so in my case that means I can fit all of my PETs within the 15 rows.
There's no indication however which charitable donations need to be recorded. Thinking about it, the only reason why I can see that any would need to be recorded at all is if they totalled more than 10% of my estate and I am looking for the IHT reduction that would bring i.e. only record any if it is in my own ( or rather my beneficiaries ) interests. Does that sound right ?
ma1co1m
There's no indication however which charitable donations need to be recorded. Thinking about it, the only reason why I can see that any would need to be recorded at all is if they totalled more than 10% of my estate and I am looking for the IHT reduction that would bring i.e. only record any if it is in my own ( or rather my beneficiaries ) interests. Does that sound right ?
ma1co1m
-
Rajput1962
- Posts: 44
- Joined: March 12th, 2018, 5:35 pm
Re: IHT and gifts
I am potentially interested in PETs sometime in the future too. What if say i gave £10k each to say 5 people each in year 1? And then do the same again in year 2? Does it make any difference if i gave away £50k to just one person ? And the same again in year 2?
The above are just made up suggestions and all in excess of the £3k limit.
Are these recorded on the tax form submission?
Are the recorded regardless of whether they exceed 10% of the estate or not? What difference does it make if the 10% is exceeded? Or not?
Thanks.
The above are just made up suggestions and all in excess of the £3k limit.
Are these recorded on the tax form submission?
Are the recorded regardless of whether they exceed 10% of the estate or not? What difference does it make if the 10% is exceeded? Or not?
Thanks.