For lifetime gifts, there’s a “seven-year rule”: if the donor survives seven years after giving the gift without any benefit reserved, the gift’s value won’t be considered for inheritance tax purposes upon the donor’s death.
However, the seven-year rule doesn’t apply to gifts from surplus income if certain conditions are met because the inheritance tax should not apply to recently taxed funds. Emily Minett explains further in this article for Campden Wealth.
To read the full article please click here.