Under IHTA84/S20, lifetime gifts not exceeding £250 in total value made by one individual to another in any one tax year are exempt. A tax year runs from 6 April to 5 April the following year.

The exemption applies only to

outright lifetime gifts by one individual to another

actual transfers of value IHTA84/S20 (3).

The exemption does not apply to

transfers into or out of settlement (IHTM16000), unless it is an absolute gift in trust for a minor

the deemed potentially exempt transfers (IHTM04064) under IHTA84/S102 (4) and FA86/S103 (5).

apportionments made to persons under IHTA84/S94 (transfers by close companies (IHTM14851)).

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