Inheritance Tax for Gifts to a Couple on Their Marriage

The media coverage surrounding Harry and Meghan returning £7 million worth of wedding gifts provides a useful reminder of the exemption from inheritance tax for gifts to a couple on their marriage.

It is possible to make a gift of between £1,000 and £5,000 to a couple getting married, depending upon how closely related the donor of the gift is.

The Royal couple also asked for donations to be made to charity instead of wedding presents and these donations, too, are exempt from inheritance tax.

Other useful lifetime exemptions include gifts of up to a total of £3,000 made in any tax year and the fact that, on some occasions, this can be ‘doubled up’.  This is in addition to unlimited small gifts of up to £250 to individuals who do not receive part of the £3,000 allowance.

Another less well-known (but very valuable) exemption is for regular gifts made from annual income in some circumstances. 

Do remember to keep detailed records of all gifts.

The use of the available exemptions is an important part of lifetime wealth planning and our Private Client Team can advise you further as part of a wider planning process.