Introduction to this document

Record of gifts

One way to reduce an inheritance tax (IHT) bill is to simply give away your wealth during your lifetime. Keeping a record of the gifts you’ve made and IHT exemptions claimed will help the executors of your estate tackle any queries from HMRC.

Keep a record

To help your executors it’s well worth keeping a Record of Gifts detailing dates, amounts and beneficiaries. Keep your records with your will and update them annually - perhaps a good time to do so is when you complete your tax return. There is no need to tell HMRC what you’ve done. It’ll be up to your executors to submit the details when dealing with your estate. Retaining supporting evidence of your income, e.g. copies of tax returns, and outgoings, e.g. bank statements, would also help your executors.