May 22nd, 2017 / Insight posted in Articles, Blog

Gifts in consideration of marriage

As Pippa Middleton’s wedding and inheritances are currently trending in the news, it might be worth considering the gifts one can make to a couple getting married that are free of Inheritance Tax.

The amount that can be gifted tax-free depends on the relationship between the two parties.

  • The gift must be made on the day of the wedding / civil ceremony, or shortly before that date
  • Gifts made after the date of the wedding / civil ceremony do not count, unless they were made in fulfilment of a binding promise before marriage / civil partnership.

Each parent, including step-parents and adoptive parents, can give up to £5,000. Each grandparent (or a more remote relative) can give up to £2,500. Anyone else can gift up to £1,000.

It is worth remembering the following inheritance tax exemptions to which everyone is entitled:

  • The Inheritance Tax annual exemption of £3,000, which means you can make gifts totalling £3,000 per year free of Inheritance Tax
  • Any number of gifts, not exceeding £250 per recipient per tax year, can be made free of Inheritance Tax
  • Gifts to spouses / civil partners, charities and political parties are exempt
  • Regular gifts made out of surplus post-tax income are also immediately exempt.