With wedding season upon us, we look at the wedding gift tax exemptions available should you choose to make a gift on the occasion of a marriage or civil ceremony. These are in effect inheritance tax exemptions
If you make a gift, whether it is cash or asset, all or part of it will be exempt from inheritance tax provided the gift is made on, or shortly before, the date of the ceremony. The amount of relief depends on your relationship with the recipient:
- Each parent can give up to £5,000;
- Each grandparent can give up to £2,500;
- Any other person (friends, other relatives etc.) can give up to £1,000.
It is generally good practice to keep a record of all gifts made and something we would certainly encourage our clients to do.
Should you wish to discuss your inheritance tax exposure and consider ways to mitigate any liability, please do get in touch