Inheritance tax: If you make cash gifts ...

[budlightshandy]

... do you keep a record? If so, how? I've been using a spreadsheet, but I'm sure I heard something on a podcast recently about an HMRC form you can use, which aligns with their 'real' probate form. I've tried to find it but can't.

I'm 52, so hopefully have a lot more than 7 years to go, but who knows, and of course there are rumours that the new Government might increase the liability timeframe to 10 years or more.

When my mum died, I spent hours trawling through old bank statements to tot up past gifts, even though she was comfortably below the IHT threshold, so I'm hoping to spare my kids the trouble by keeping a rolling record.

One of the schedules on the probate forms asks for details of lifetime gifts. If you use this for your record keeping, you are in effect completing the form for your executors.
Try the HMRC website

We don't give cash gifts right now.

In your case, obviously make it a rolling record so your children know how to get access to. It's awful having to think about it, but we've both got details of all of our accounts, savings, utility accounts and pensions as they get added, and eachother and DD can gain access/knows where paperwork is.

I've had a look today, but it's a bit of a maze. I did do my Mum's probate forms myself, so could probably find it if I spent long enough - I just thought someone might have a direct link.

https://www.thisismoney.co.uk/money/news/article-11619607/How-grannys-diamond-ring-land-inheritance-tax-shock.html

This was useful at the time. But I'm waiting for the budget because there could be changes.

I just have a document which I keep updated. We have fairly large gifts 6 years ago. Since then it's been monthly payments from income plus the max lump sum per year which is iirc £3000.
It's in a file of death stuff like where the wills are and LPAs

The form you are thinking of is the IHT 403 which would be used to record gifts after your death. If you have sufficient surplus income and make regular gifts then there is an exemption for ‘normal expenditure out of income’ the form on the last page that would need to be filled in shows your income and expenses. If you are considering this do you research/ speak to a solicitor as you need to jump through the right hoops. https://www.gov.uk/government/publications/inheritance-tax-gifts-and-other-transfers-of-value-iht403
there are other lifetime exemptions also eg £3k per person per tax year (carry forward for 1 year only so max £6k). If a couple is each so max 12k. As well as small gifts £250 per person per tax year and marriage gifts exemptions.

Perfect. Thanks @22mumsynet!

This book is excellent. Written by a farmer who became a probate practitioner and then a clergyman iirc.

https://www.yourlastgiftbook.com/about-the-book/#:~:text=%E2%80%9CMatthew's%20book%20is%20a%20fascinating,soothing%20at%20the%20same%20time.