Wedding season 2016 – gifts and tax relief
27th April 2016
With wedding season fast approaching, the Institute of Chartered Accountants in England and Wales (ICAEW) is reminding guests of the tax relief available if they choose to make a gift to a married couple.
Gifts to married couples or civil partners are exempt from inheritance tax (IHT) as long as the couple have a UK residence.
The tax relief available on wedding gifts varies depending on the relationship between the giver and the recipient.
The following applies for wedding gifts:
- each parent can give up to £5,000 tax free
- grandparents can give up to £2,500 each
- relatives and friends can give up to £1,000.
All gifts must be made on or before the date of the wedding ceremony.
Anita Monteith, technical tax Manager at ICAEW, said:
“With more and more couples living together before marriage, it is becoming increasingly common for newlyweds to request gifts of cash rather than more traditional gifts such as a kettle or toaster for their new home.
“Whatever the gift, all or part of it will be exempt from IHT provided the gift is made on or shortly before the date of the wedding or civil partnership ceremony.”
Contact us today to discuss your tax planning.