Currently dealing with an estate which qualifies as an exempt excepted estate, however there have been gifts out of income, does this mean to claim the exemption the full IHT 400 form has to be completed?
It depends on the value of the gifts out of income, and any other gifts made by the deceased. IHTM06018 should assist. If the value of the gifts out of surplus income are more than £3,000 per year, then they are taken into account, such that if the deceased died after 1 January 2022 and the total specified transfers (i.e. gifts out of surplus income and other gifts made by the deceased which they did not reserve a benefit) exceed £250,000 or more, the estate is not exempt and an IHT400 must be filed.
Ihsan Ali
I Will Solicitors Ltd