.png)
.png)
MARK MCLAUGHLIN highlights the importance of the inheritance tax exemption for normal expenditure out of income
KEY POINTS
- Rules contained in IHTA 1984 s 21.
- Care in their application.
- What is normal income?
- Use of power of attorney.
- Reporting gifts on IHT100.
It is probably fair to say that the tax system in this country is not known for its generous provisions and it is definitely not known for its simplicity.
However the exemption from inheritance tax for normal expenditure out of income (IHTA 1984 s 21) is exceedingly generous particularly because there is no statutory limit in monetary terms.
The exemption is effectively only restricted by the transferor’s personal circumstances and to the extent that the donor’s gifts satisfy certain conditions.
The normal expenditure out of income exemption is relatively well known and yet is...
Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.
