Gifting and IHT — a look at everything advisers need to know

Gifts made between spouses or civil partners either during their lifetime or under the terms of a will are made free of inheritance tax. This means that the threshold of £325,000 of assets that can pass to anyone other than a spouse, civil partner, or a charity without giving rise to a charge to inheritance tax, remains intact irrespective of the nature or value of inter-spouse gifts. However, gifts made between long-term partners do not benefit from the same exemption. This means that if the aggregate value of gifts made from one partner to another in any tax year exceeds £3,000, and th...