- 1. The Scope of the Book: Estate Planning Introduced
- 4. Trusts: Tax-Efficient Management
- 6. The Family Business
- 6.1.3 Capital Gains Tax angles
- 6.3.2 The detail of the legislation
- 6.5.2 The scope of employment income for Income Tax and National Insurance purposes
- 9. Investments
- 10. Life Assurance
- 11. Pensions
- 12. Charitable Giving
- 15. Leaving the UK
- 15.2.4 Occasional residence abroad not enough
- 15.2.8 HMRC’s proposals for a comprehensive statutory test for residence from 2012/13, deferred to 2013/14
- 16. Non-UK Domiciliaries Living in the UK
- 18. Wills
2 - Inheritance Tax Mitigation: The Basics
Chapter: 2 - Inheritance Tax Mitigation: The Basics
The marriage/civil partnership exemption
2.2.7
Quite a bit of value can be extracted from the chargeable estate(s) when a son or daughter (or step-son or daughter) gets married or enters into a civil partnership (IHTA 1984 s22). The exempt amounts depend on the relationship between donor and donee, as follows:
• £5,000 per parent;
• £2,500 for grandparents; and
• £1,000 for all others.
Gifts in kind as well as in cash are exempt, as are certain types of settled gift. The gift must be an outright gift to or for a party to the marriage/civil partnership: hence there is no exemption if the celebrations are called off.