SolvedIHTM14191 | Lifetime transfers: gifts in consideration of marriage or registration of civil partnership: summary
From HM Revenue & Customs · Inheritance Tax Manual
Under IHTA84/S22 a gift will be exempt up to the limits set out below if it was made
on or shortly before a marriage or the registration of civil partnership (IHTM11032) takes place,
to one or both parties to the marriage or civil partnership, and
to become fully effective when the marriage or registration of civil partnership takes place.
The limits of the exemption for the transferor (regardless of whether the transfer is to both parties to the marriage or only one) are
£5,000 if they are a parent of one party to the marriage or civil partnership,
£2,500 if they are either a remoter ancestor than a parent of a party to the marriage or civil partnership, or are one of the parties to the intended marriage or civil partnership,
£1,000 in any other case.
If the value transferred by the gift is more than the amount of the available exemption, it is an exempt transfer up to the amount of the available exemption, and the excess is chargeable.
The exemption can apply to:
The exemption does not apply to
the deemed potentially exempt transfer (IHTM04064) under FA64/S102 (4) and FA86/S103 (5)
apportionments made to persons under IHTA84/S94 (transfers by close companies (IHTM14851)).