Chapter: 2 - Inheritance Tax Mitigation: The Basics

Planned lifetime giving (without retention)

2.6.2

Remember for example that the £3,000 annual exemption could be constituted by chattels just as much as by cash.  A gift will be a disposal for CGT purposes and so will trigger a liability if the total chargeable gains exceed the annual exempt amount for the year (£10,600 for 2011/12).  There is an exemption for a chattel if its value does not exceed £6,000 (which also applies to a set of chattels given away at the same time: TCGA 1992 s262).  But of course, to be effective for IHT purposes there must be no continuing enjoyment of the chattel; hence, alternatively: