Inheritance Tax Query

[Frankfurt17]

Sadly my MIL died and the estate is being sorted out. My question is about declaring gifts. I understand about gifts of money, land, property etc. However she kindly paid for us to all go on holiday 2 years ago.

Does a holiday count as a financial/monetary gift and we declare our share of the value of the holiday?

Thanks.

I think up to 3,000 pounds can be gifted per year without IT implications

But if the estate's subject to IHT forms,Tamatave, even if no IHT is payable, gifts have to be declared.

Cash transferred, (unless repayment for something) is a gift.So if deceased gives you money for a holiday, it's a gift.
Transfer of valuable property, like a painting or a watch, could very probably be a gift.

If the deceased pays for your holiday( makes the booking themselves as part of a group booking), then okay you have saved money because you didn't have to pay for your holiday, but nothing has been transferred to you which you could convert to cash, so I would not understand that to be a capital transfer. And capital transfers are the kind of gifts HMRC are interested in.

But, why not ring HMRC helpline and check?

www.gov.uk/inheritance-tax/gifts
www.gov.uk/valuing-estate-of-someone-who-died

Sorry for your loss, OP. The forms are daunting. I'd also ring the helpline for advice tbh. HMRC will query anything they are not sure about but you can ask them first.

Thank you. I will call HMRC just to be sure.