UK Tax Questions? Ask a UK Tax Advisor for answers ASAP
Hi.Take a look at the notes under "Applying ‘Taper Relief’ to gifts" here .The IHT nil-rate band is used first against gifts made in the seven years before death. Taper relief only applies to an excess of gifts over and above the IHT nil-rate band in box 3 of IHT400 Calculation so if the value of all the gifts made in the seven years before death was equal to or less than that figure (the one that goes in box 3 of IHT400 Calculation), there is no taper relief.Based on what you have told me, you have completed the form IHT403 accurately. The figure in box 7 of IHT403 goes into box 4 of IHT400 Calculation. The available nil-rate band from box 3 is then allocated to the gifts first.I hope this helps but let me know if you have any further questions.
Thanks for your reply.
Give me a day to absorb it before I close down.
Why do they make life so bloody complicated?
Will be ticking the OK box.
The confirmation that I had filled in the Gifts boxes correctly was reassuring.
Therefore the errors made by the tax man in my favour (a few hundred pounds) are not my worry.
I don't have the stamina to revisit tax returns with HMRC, even when overcharged (within reason).
This subject cropped up because I revisited my mother's IHT return of 2010 to see how my heirs are to benefit from my prospective demise (not imminent).