IHTM14242 - Normal expenditure: pattern of gifting

Some cases present a complex pattern that consists of different interwoven habits, with which may be associated gifts not habitual at all. You will need to carefully analyse these cases.

You must leave out of consideration any gift clearly made for some special purpose, along with gifts made in pursuit of a separate habit. The question whether any particular gift is normal is one of impression and you should use common sense and consideration of the facts to decide.

Example

A father makes a marriage gift to a child and out of fairness makes similar gifts to his other children. If he does this every time one of his children marries, all those gifts will be habitual.

But, if such gifts are made on the occasion of the marriage of only one of the children they will be special, not normal, gifts notwithstanding that the transferor habitually made gifts to the children in other circumstances.

(This text has been withheld because of exemptions in the Freedom of Information Act 2000)