IHT wedding gift question

IHT wedding gift question

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I'm not even going to pretend this is for a client, it's for my studies, if that offends you (as I know it does for some of you(!)) then just move on please.

Still here? Good good! I understand that parents can give children IHT free money, grandparents can give them money... assume I understand all but the below.

My book says (and I can't find a section on the HMRC site to check due to their AMAZING search engine) that the, I suppose fiance, can gift up to £2,500 to their new spouse "for example for an engagement ring". So two questions:

1. I bought my gf a ring... over a year ago, and our wedding is in June 2010. If I had, the week before, given £6,000 to my brother and used up my AE's, would that mean I would have to have declared the ring as a PET (assuming I loved her enough to spend more than £250)?

2. That aside, if I just gave her £2,000 the week before our wedding, would that be IHT free or does it have to be for something wedding related like a ring? Actually why on earth would anyone give their spouse something in respect of their wedding, it would be IHT free after the marriage anyway!

Cyril

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By geoffwolf
09th Mar 2009 11:15

you have
in fact answered your own question from the best advice point of view.

If you survive 7 years from the gift its of no consequence anyway.

If you habitually spend money on your gf out of net taxed income it also doesn't count for IHT.

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