Inheritance Tax Act 1984 section 22

Gifts in consideration of marriage or civil partnership

Section 22 provides an inheritance tax exemption for gifts made in consideration of marriage or civil partnership, subject to monetary limits that vary depending on the relationship between the person making the gift and the parties to the marriage or civil partnership.

• Gifts made in consideration of marriage or civil partnership are exempt from inheritance tax up to £5,000 from a parent, £2,500 from a remoter ancestor or from one party to the other, and £1,000 from anyone else.
• The exemption applies to outright gifts to a party to the marriage or civil partnership, to gifts to descendants of the giver, and to gifts settled into trust, provided the trust beneficiaries are restricted to the couple, their children, and certain related persons.
• An outright gift to someone other than a party to the marriage or civil partnership does not qualify for the exemption, and a gift into trust will not qualify if the potential beneficiaries include persons outside the permitted categories.
• Where the value of the gift exceeds the available exemption limit, only the amount up to the limit is exempt and the excess remains chargeable to inheritance tax.

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