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
The exemption does not apply to
A gift exempted under s.20 cannot be taxed as a GWR (
The £250 exemption is applied to the value transferred before any grossing up ( IHTM14593). Apply the exemption separately to each donee. It does not matter how many different donees there are, provided each donee is given no more than £250 in the same tax year.
If the gifts to any one donee in the same tax year exceed £250, the s.20 exemption is wholly lost in relation to that donee.
Unlike the annual exemption ( IHTM14141)