Wedding Gift Exemption IHT UK: £5,000 from Parents, s22 IHTA 1984, Rules and Limits (2026)
Parents can each give £5,000 as a tax-free wedding gift — combined with the annual exemption, up to £11,000 per parent with no IHT risk of any kind. Four grandparents add another £10,000. The gift must be given before the wedding and is conditional on the marriage taking place.
| Donor | s22 Limit | Statute | Total Per Couple | Plus Annual Exemption (s19) | Key Conditions |
|---|---|---|---|---|---|
| Parent of either party to the marriage/CP | £5,000 | s22(4)(a) IHTA 1984 | Up to £20,000 total: 4 parents × £5,000 each (both sets of parents) | Parent who hasn't used annual exemption (s19 IHTA): £5,000 + £3,000 = £8,000; with prior year carry-forward: up to £11,000 | Must be given on or before the date of the wedding/CP. Must be made in consideration of and conditional on the marriage/CP taking place. If wedding cancelled after gift: exemption lost; gift becomes PET (s3A IHTA) from date of gift; 7yr clock runs from original gift date. |
| Grandparent or remoter lineal ancestor of either party | £2,500 | s22(4)(b) IHTA 1984 | Up to £10,000 total (if 4 grandparents, all giving): 4 grandparents × £2,500 each. Great-grandparents also qualify at £2,500 each. | Grandparent who hasn't used annual exemption: £2,500 + £3,000 = £5,500; with prior year carry-forward: up to £8,500 | Remoter lineal ancestor (great-grandparent, great-great-grandparent) also qualifies at £2,500. The relationship must be lineal (not, e.g., uncle/aunt — those are 'any other person' at £1,000). |
| One party to the marriage/CP — gift to the other party (fiancé/fiancée gift) | £2,500 | s22(4)(b) IHTA 1984 | £2,500 per person = up to £5,000 if both give to each other (both must make the gift conditionally before the wedding) | Combined with annual exemption (s19): £2,500 + £3,000 = £5,500 per person | The s18 IHTA spousal exemption (unlimited) applies AFTER the marriage is complete. The s22(4)(b) gift is for pre-marriage gifts CONDITIONAL ON the marriage. Once married, all transfers between spouses are covered by the unlimited s18 IHTA exemption regardless of amount. |
| Any other person (non-parent, non-grandparent — e.g., uncle, aunt, sibling, friend, employer) | £1,000 | s22(4)(d) IHTA 1984 | £1,000 per any other individual donor | Combined with annual exemption (s19): £1,000 + £3,000 = £4,000 per donor if annual exemption unused; with carry-forward: up to £7,000 | Each 'other person' has their own £1,000 exemption for wedding gifts. If a friend gives £10,000 as a wedding gift: £1,000 exempt under s22; £9,000 is a PET (s3A IHTA) — IHT-free if the friend survives 7 years; otherwise drawn back into friend's estate. The annual exemption (£3,000 — s19) is separate and can also be applied against the £9,000 PET. |
| Combined family wedding gift scenario — both sets of parents and grandparents | Variable — up to £30,000+ from s22 alone for a large family | s22 IHTA 1984 — each donor applies their own individual limit | Example: 4 parents (£5k each = £20k) + 4 grandparents (£2.5k each = £10k) = £30k in s22 exemptions alone. If all 8 donors also have unused annual exemptions (s19 — £3k each): additional £24k = total £54k from immediate family free of any IHT risk, no 7yr clock, no PET | Annual exemption can be used by each donor independently; if unused from prior year, a further £3k per donor per year is available (s19(2) IHTA — one year carry-forward only) | Each donor completes their own separate gift. Each donor's exemptions are entirely separate — there is no aggregation between donors. No HMRC form required for s22 gifts. Keep a record of each gift, the relationship, and the date (in case of HMRC enquiry on a future estate). |
Wedding gift exemption IHT UK 2026. s22 IHTA 1984: gifts in consideration of marriage/civil partnership; on or before wedding/CP date; conditional on marriage/CP taking place. Amounts: s22(4)(a) parent of either party £5,000; s22(4)(b) grandparent/great-grandparent/remoter lineal ancestor £2,500; s22(4)(b) one party to the other £2,500; s22(4)(d) any other person £1,000. Annual exemption: s19 IHTA 1984 — £3,000 per donor per tax year; s19(2) — one prior year carry-forward if unused. Small gifts exemption: s20 IHTA — £250 per recipient per donor per year (separate from s22; cannot be used for same gift if s22 applies). Normal expenditure from income: s21 IHTA — uncapped; immediate; requires regular pattern of giving from surplus income. Spousal exemption: s18 IHTA — unlimited between spouses/CPs AFTER marriage/CP formed. PET: s3A IHTA — gifts above exemption limits; IHT-free if donor survives 7yr; taper relief s7(4) years 3-7. CLT: discretionary trust gifts — lifetime IHT at 20% if above NRB. No HMRC form required for s22 gifts. Keep record: donor name, relationship, date, amount, conditional on wedding. Civil Partnership Act 2004: s22 applies equally to civil partnerships.
Wedding Gift Exemption IHT: Complete Guide
How the wedding gift exemption works under s22 IHTA 1984
Section 22 of the Inheritance Tax Act 1984 provides a specific IHT exemption for gifts made 'in consideration of marriage or the formation of a civil partnership'. Unlike many IHT exemptions, the wedding gift exemption has fixed monetary limits based on the relationship between the donor and the couple — not the size of the gift or the donor's income. The exemption operates as follows: the gift is completely outside the scope of IHT — it is not a PET, not a CLT, not subject to any 7-year survival clock. If the conditions are met, the gift is simply exempt. No IHT reporting is required for gifts within the s22 limits. The two key conditions: (1) the gift must be made IN CONSIDERATION OF the marriage or civil partnership — meaning it is given because of the upcoming wedding, not for some other reason; and (2) the gift must be CONDITIONAL ON the marriage or civil partnership taking place — if the wedding is called off and the donor has already given the gift, the exemption is lost retrospectively (the gift becomes a PET from the date it was originally made, and the 7-year clock runs from that date). The timing requirement: the gift must be given ON OR BEFORE the date of the wedding or civil partnership. Gifts made after the wedding do not qualify for the s22 exemption (though they may still qualify as PETs under s3A IHTA, annual exemption gifts under s19, or other exemptions). The gift can be in any form: cash, investments, shares, jewellery, property — any genuine gift of value qualifies.
Combining the wedding gift exemption with the annual exemption
The wedding gift exemption (s22 IHTA) and the annual exemption (s19 IHTA — £3,000 per donor per tax year) can be used together for the same gift. A parent who has not used their annual exemption in the current tax year can give: £5,000 (s22 wedding gift exemption) + £3,000 (s19 annual exemption) = £8,000 for the occasion of the wedding, entirely free of IHT. If the prior year's annual exemption was also unused (s19(2) IHTA allows ONE year's unused annual exemption to be carried forward), the parent can give up to £11,000. How it works in practice: the annual exemption is applied first to a gift; then if the gift is a wedding gift, the s22 exemption applies to the balance. Example: parent gives £11,000 as a wedding gift. Year's own annual exemption: £3,000 used first; prior year carry-forward: £3,000 applied second; remaining: £5,000 covered by s22 wedding gift exemption. Total: £11,000 entirely exempt. Note: the annual exemption must be genuinely unused — if the parent has already made £3,000 worth of other gifts in the tax year (using the s19 annual exemption), the carry-forward annual exemption is £3,000 (if unused from prior year), and the s22 wedding gift exemption provides the additional £5,000. The key planning point: for parents and grandparents who haven't made any other gifts in the current tax year, the wedding provides an opportunity to pass a larger sum than the s22 limit alone suggests.
The 'conditional on marriage' requirement — what happens if the wedding is cancelled
The requirement that the gift be 'conditional on the marriage or civil partnership taking place' (s22 IHTA) creates a specific risk: if the gift has already been given but the wedding is subsequently called off, the s22 exemption is lost. The gift is then treated as a PET (potentially exempt transfer — s3A IHTA) made on the date the gift was originally given. The 7-year clock runs from the date of the original gift — not from the date the wedding was cancelled. This means: if the wedding was planned for June 2026 and the gift was given in May 2026, but the wedding was cancelled in September 2026, the PET dates from May 2026. If the donor dies in 2030 (within 7 years of May 2026), the PET is drawn back into the estate. Taper relief would apply if the donor died in years 3-7 from the gift date (s7(4) IHTA), but the PET is still included in the 7-year cumulation for NRB purposes. Practical advice: for large gifts (e.g., a parent giving £100k towards a property deposit 'on the occasion of the wedding'), do not describe the gift as conditional on the marriage if you want it to be a clean PET from the gift date, regardless of whether the wedding proceeds. Condition it on the marriage only if the gift genuinely would not have been given without the marriage — and accept the risk that if the wedding is called off, the gift becomes a PET from the original date. Small gifts within the s22 limits are low risk in any event — even if the exemption is lost, the gift is a PET of only £5k-£1k, and IHT only arises if the donor dies within 7 years and the NRB is also exceeded.
Large wedding gifts — what happens above the s22 limit
The s22 exemption only covers the amounts within the specified limits. Any excess above the s22 limit (and above any applicable annual exemption) is a Potentially Exempt Transfer (PET — s3A IHTA). Example: parent gives £25,000 as a wedding gift. S22 exemption covers: £5,000. Annual exemption (s19) covers: £3,000 (if unused; or £6,000 with prior year carry-forward). PET: £25,000 - £5,000 - £3,000 = £17,000 (or £25,000 - £5,000 - £6,000 = £14,000 with carry-forward). The £17,000 (or £14,000) is a PET — the gift is IHT-free if the parent survives 7 years. If the parent dies within 7 years, the PET is drawn into the estate and taper relief applies in years 3-7. For very large gifts (e.g., parents contributing to a property deposit), the s22 exemption is a small portion of the overall gift — the bulk will be a PET. The planning focus for large gifts: make the gift as early as possible to start the 7-year clock; the s22 exemption and annual exemption are useful but not the primary planning tool for large sums. Normal expenditure from income (s21 IHTA) can also cover regular wedding-related payments (e.g., paying wedding venue deposits from surplus income on a recurring pattern — though a single wedding is not 'normal expenditure'; what s21 covers is an established pattern of regular giving, not a one-off wedding cost).
Civil partnerships — the same rules apply
The s22 IHTA wedding gift exemption applies equally to civil partnerships. The language in the statute includes gifts made 'in consideration of marriage or the formation of a civil partnership' — civil partnerships were added to s22 by the Civil Partnership Act 2004. The amounts, conditions, and timing rules are identical for civil partnerships as for marriages. Same-sex couples in civil partnerships or marriages benefit from the same exemptions as any other couple. The s18 IHTA spousal/CP exemption (unlimited transfers between spouses and civil partners) applies fully to civil partners after the civil partnership is formed — so any gifts after the civil partnership formation are covered by the unlimited s18 exemption between the parties. Pre-civil partnership gifts from one party to the other are covered by s22 at £2,500 (one party to the other), plus any applicable annual exemption. Gifts from family members of either party follow the same structure (£5,000 from parents; £2,500 from grandparents; £1,000 from others). Cohabiting couples who do NOT formalise their relationship through marriage or civil partnership receive none of these benefits — no s22 exemption; no s18 IHTA unlimited spousal exemption. This is one of the many IHT advantages of formally registering a relationship through marriage or civil partnership.
Frequently Asked Questions
How much can parents give as a wedding gift free of inheritance tax?
Each parent can give £5,000 free of inheritance tax as a wedding gift under s22(4)(a) IHTA 1984. Both parents of each party can give separately: 4 parents × £5,000 = up to £20,000 in total from both sets of parents. The gift must be given in consideration of and conditional on the marriage or civil partnership taking place, and must be given on or before the wedding day (not after). The s22 exemption can be combined with the annual exemption (s19 IHTA — £3,000 per donor per year): a parent who hasn't used their annual exemption can give £5,000 + £3,000 = £8,000 tax-free around a wedding; with the prior year's unused carry-forward (s19(2) — one year only), up to £11,000. If the gift exceeds the s22 and annual exemption combined limit, the excess is a Potentially Exempt Transfer (PET — s3A IHTA) — IHT-free if the donor survives 7 years.
What is the IHT wedding gift exemption for grandparents?
Each grandparent can give £2,500 free of IHT as a wedding gift under s22(4)(b) IHTA 1984. This applies to grandparents (and great-grandparents, and remoter lineal ancestors) of either party to the marriage or civil partnership. Four grandparents each giving £2,500 = £10,000 total from grandparents. Combined with each grandparent's unused annual exemption (s19 — £3,000): each grandparent can give up to £5,500 (or £8,500 with prior year carry-forward). The gift must be given on or before the wedding day and must be conditional on the marriage taking place. If the wedding is cancelled after the gift is made, the exemption is lost and the gift becomes a PET (s3A IHTA) from the date of the original gift.
Does the IHT wedding gift exemption apply after the wedding?
No — the s22 IHTA wedding gift exemption ONLY applies to gifts made on or before the date of the wedding or civil partnership. Gifts made after the wedding do not qualify for the s22 exemption. However, gifts after the wedding may still be IHT-exempt under other exemptions: (1) annual exemption (s19 IHTA — £3,000 per donor per year); (2) small gifts exemption (s20 IHTA — up to £250 per recipient per year from any donor); (3) normal expenditure from income (s21 IHTA — uncapped, if from surplus income as part of a regular pattern); (4) they are PETs (s3A IHTA — IHT-free if donor survives 7 years). Between spouses after the marriage: all gifts are covered by the unlimited s18 IHTA spousal exemption regardless of amount.
What if the wedding is cancelled after we've given wedding gifts?
If the marriage or civil partnership does not take place, the s22 IHTA exemption is lost retrospectively — because the exemption is only available for gifts made 'in consideration of' and 'conditional on' the marriage actually taking place. The gift that was given conditionally on the marriage is then treated as a Potentially Exempt Transfer (PET — s3A IHTA) made on the date it was originally given. The 7-year clock for IHT purposes runs from the original date of the gift. If the donor dies within 7 years of that date, the PET is drawn back into the estate for IHT. For small gifts within the s22 limits (e.g., £5,000 from a parent), the risk is low — the gift of £5,000 may not push the estate over the NRB even if drawn back in. For larger gifts that relied on the s22 exemption for only a small portion and the rest was a PET regardless, the cancellation makes little difference to the PET analysis.
Can I give more than £5,000 to my child as a wedding gift without IHT?
Yes — but only the first £5,000 is covered by the s22 IHTA wedding gift exemption. The excess is a PET (s3A IHTA) which is IHT-free if you survive 7 years. You can also use your annual exemption (s19 IHTA — £3,000 per year; prior year carry-forward of up to £3,000 = £6,000 if prior year was unused): combined with s22, a parent with fully unused annual exemptions can give £11,000 (£5k + £6k) with no IHT risk of any kind. Above that, the remainder is a PET — large gifts to children as wedding gifts are very common and IHT-efficient because the 7-year clock on PETs is generous. Make the gift as early as possible before the wedding (as long as it is conditional on the wedding proceeding) to maximise the time the clock has been running before the donor's death. If the gift is truly large (e.g., £100k property deposit), consider making it as a clean PET (not conditional on the wedding) to avoid the wedding-cancellation risk of losing the exemption.
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