To ask the Chancellor of the Exchequer if he will increase the limit of the annual exemption from inheritance tax for gifts; and if he will make a statement.
Under the current inheritance tax rules, most gifts made more than seven years before death are not regarded as within the chargeable estate for tax purposes. Gifts made within this period are brought within the taxable estate; however they will only be subject to IHT where the taxable estate exceeds the nil-rate band of £300,000. Where gifts made within this period may be liable to IHT, there is an exemption of £3,000 each year; there are also various other gifts reliefs available. The Government keep all taxes under review.