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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3695
Experience:  Solicitors 2 years plus PQE
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Inheritance tax enquiry. Am I right in thinking that I can

Customer Question

Inheritance tax enquiry.
Am I right in thinking that I can give each of my 2 daughters say £200 in regular monthly payments as 'part of my normal expenditure' and that these payments will be exempt from inheritance tax ? Payment would be from pension income and not from capital.
Thanks for answering my question.
John Frampton.
Submitted: 3 years ago.
Category: Law
Expert:  Alex J. replied 3 years ago.
Hi
Thank you for your question and welcome.
YOu are correct you can give your duaghter a regular monthly payment as long as it is part of your regular monthly expenditure. http://www.hmrc.gov.uk/inheritancetax/pass-money-property/exempt-gifts.htm#3
It is for your to make this decision, HMRC will not "clear" it for you. If for what ever reason you are investigated you would have to prove that despite making this monthly payment you could/can maintain your regular and normal lifestyle.
Can I assist you any further?
Kind regards
AJ
Alex J. and other Law Specialists are ready to help you
Customer: replied 3 years ago.

Thank you Alex J. your advice is most useful. I would just like to check one point. You say it is ok for me to give regular payments to my daughter (singular) without counting for inheritance tax. Is it ok to make 2 payments each month i.e. one to each of my 2 daughters ?

Thank you.

John Frampton

Expert:  Alex J. replied 3 years ago.
Hi,
Thank you.
You can make the payment to both daughters- but this comes back to the same point as described above, that being it will be for you to prove that making this payment does not impact on your normal lifestyle.
Kind regards
AJ