IHTM14191 - Gifts made in consideration of marriage or registration of civil partnership: summary

If a gift is made

• on or shortly before marriage or registration of civil partnership ( IHTM11032) taking place
• to one or both parties to the marriage or civil partnership, and
• to become fully effective on the marriage or registration of civil partnership taking place

it will be exempt up to the following limits

• £5,000 if the transferor is a parent of one party to the marriage or civil partnership
• £2,500 where the transferor is either a remoter ancestor than a parent of a party to the marriage or civil partnership, or is in fact one of the parties to the intended marriage or civil partnership
• £1,000 in respect of any other transferor.

If the value transferred by the gift is greater than the amount of the available exemption, it is an exempt transfer up to the amount of the available exemption, and the excess is chargeable.

The exemption can apply to:

• lifetime gifts by individuals ( IHTM04053) and
• lifetime termination of an interest in possession ( IHTM16061) in settled property.

The exemption does not apply to

• the deemed PETs ( IHTM04064) under IHTA84/S102 (4) and FA86/S103 (5)
• apportionments made to persons under IHTA84/S94 (transfers by close companies ( IHTM14851)).

To the extent to which a gift is exempted under marriage or civil partnership exemption ( IHTM11032) it cannot be taxed under the GWR ( IHTM04071) rules.