Marriage Gift Exemption and IHT: Section 22 IHTA 1984 — Wedding Gifts Free of Inheritance Tax
Gifts made in consideration of a marriage or civil partnership are exempt from IHT under section 22 IHTA 1984 — up to £5,000 per parent, £2,500 per grandparent, and £1,000 per any other donor. Combined with the annual exemption, a couple getting married can receive substantial gifts free of IHT. The exemption is per marriage, applies to civil partnerships equally, and can be stacked with other exemptions.
Marriage Gift Exemption Limits
| Donor | IHT-free limit | Notes |
|---|---|---|
| Parent of either party to the marriage | £5,000 per parent | Each parent of the bride and each parent of the groom can each give £5,000. A couple with both sets of parents alive could receive up to £20,000 from parents alone (4 × £5,000). |
| Grandparent or remoter ancestor of either party | £2,500 per grandparent | Each grandparent can give £2,500. Remoter ancestors (great-grandparents etc.) are also included at £2,500. |
| Either party to the marriage (i.e. a gift to one's own spouse) | £2,500 | A gift from one party to the other in consideration of the marriage qualifies at £2,500. Usually irrelevant in practice as the spousal exemption is unlimited. |
| Any other person | £1,000 per donor | Aunts, uncles, siblings, friends, colleagues — anyone not in the above categories can give £1,000 per donor per marriage, free of IHT. |
Key Rules for the Marriage Gift Exemption
The 'in consideration of the marriage' requirement
The gift must be made in consideration of the marriage under s22(1)(a) IHTA 1984. This has two elements: (1) the gift must be conditional on the marriage taking place; and (2) the gift must be made at the time of or shortly before the marriage — not years in advance. HMRC's guidance treats gifts made shortly before the marriage ceremony (typically within 12 months) as being in consideration of the marriage, provided the marriage actually occurs. A gift made after the marriage has already taken place does not qualify for the s22 exemption. A gift made conditionally on a marriage that is later cancelled is not caught — the condition was not satisfied and the gift may be void or returnable. Where a gift is unconditional and made long before the marriage ceremony, HMRC may argue it is not 'in consideration of the marriage' and refuse the exemption.
Combining the marriage exemption with the annual exemption
The s22 marriage gift exemption can be combined with the £3,000 annual exemption under s19 IHTA 1984 and the £250 small gifts exemption under s20. Important combination rules: (1) The marriage exemption and the annual exemption can both be used in the same tax year for the same recipient, as long as the gifts are separate. A parent can give a child £5,000 (marriage exemption) plus £3,000 (annual exemption) = £8,000 in total free of IHT in the tax year of the marriage. (2) The annual exemption cannot be applied to a single gift partly: if the parent gives £6,000 as a single gift 'in consideration of the marriage', the £5,000 marriage exemption covers £5,000 and the remaining £1,000 falls against the annual exemption. (3) Where the annual exemption has already been used in the tax year (e.g. for a previous gift), only the unused balance of the annual exemption can supplement the marriage exemption.
Civil partnerships and the marriage exemption
The s22 IHTA 1984 marriage gift exemption applies equally to civil partnerships — gifts in consideration of a civil partnership formation qualify at the same limits as gifts in consideration of a marriage. This was confirmed by the Civil Partnership Act 2004, which extended the application of IHT exemptions to civil partners as if they were spouses. As a result: a parent can give £5,000 free of IHT to each party to a civil partnership (or to the couple jointly up to £5,000 from each parent); grandparents £2,500; others £1,000.
What happens if the marriage does not take place?
The marriage gift exemption under s22 requires the marriage to actually take place. If a gift is made in consideration of a marriage that never occurs (engagement broken off, wedding cancelled, party dies before the ceremony), the gift is not exempt under s22 — because the marriage did not take place, the condition was not satisfied. The IHT treatment of a failed marriage gift: if the gift was a PET (not immediately chargeable), the failed condition means it was never a valid s22 gift from the outset. However, in many cases the 'gift' may be recoverable from the recipient if the marriage never took place — in which case there is no effective gift and no IHT issue. Where the gift was irrevocably made but the marriage failed, specialist advice should be sought.
Documenting the marriage gift exemption: HMRC IHT403
Where a donor dies within 7 years of making a marriage gift, the executors must complete HMRC form IHT403 (gifts and other transfers of value) and claim the s22 exemption. The executors should ensure they can demonstrate: (1) the date of the gift; (2) the relationship between the donor and the parties to the marriage; (3) that the marriage took place (and the date); and (4) that the gift was made in consideration of the marriage (not an unrelated gift made around the same time). Written evidence — wedding invitations, bank transfer records, cards accompanying gifts — is useful documentation. Where the gift was given in cash or as a cheque, bank records showing the payment around the time of the wedding are typically sufficient.
Frequently Asked Questions
Can both parents each give £5,000 tax-free for their child's wedding?
Yes — each parent of either party to the marriage can give £5,000 under s22 IHTA 1984. The limit is per donor, not per couple. So: the bride's mother can give £5,000, the bride's father can give £5,000, the groom's mother can give £5,000, and the groom's father can give £5,000 — a total of £20,000 from four parents combined, all free of IHT. Each parent can also add their £3,000 annual exemption, bringing each parent's tax-free limit to £8,000 (if the annual exemption is available), and the couple could receive up to £32,000 from four parents (4 × £8,000) free of IHT.
Do grandparents get the same £5,000 limit as parents for wedding gifts?
No — grandparents and remoter ancestors (great-grandparents, etc.) are limited to £2,500 each under s22 IHTA 1984, not £5,000. The £5,000 limit applies only to parents. Grandparents can combine the £2,500 marriage exemption with their £3,000 annual exemption, giving a combined total of up to £5,500 per grandparent in the tax year of the wedding (subject to the annual exemption being unused).
Can step-parents give £5,000 under the marriage gift exemption?
Yes — where a step-parent legally adopted the child, they qualify as a 'parent' for the purposes of s22 IHTA 1984 and can give £5,000. For non-adopting step-parents: HMRC's position is that the term 'parent' in s22 includes step-parents (natural parents who have not adopted still qualify as parents — the question is whether a step-parent who is not also a biological parent qualifies). The legislation does not specifically exclude step-parents. However, where there is any doubt, the £1,000 'any other person' limit should be applied conservatively. The definition of 'parent' for s22 purposes remains an area where legal advice is recommended for blended family wedding gift planning.
Does the marriage gift exemption apply to gifts from a trust?
Yes — a trust can make gifts in consideration of a marriage that qualify for the s22 exemption. For a discretionary trust, the trustees exercise their discretion to make a gift to a beneficiary in consideration of their marriage — the gift qualifies for s22 at the appropriate limit (£5,000 if the trust is the family's or parents', £1,000 for all other trusts, on the basis that a trust is 'any other person'). The s22 exemption for a trust is at the £1,000 limit (the trust is not a parent or grandparent). The £3,000 annual exemption is also available to the trustees as a separate exemption.
Is the marriage gift exemption per marriage or per tax year?
The marriage gift exemption under s22 is per marriage — each marriage creates a fresh allowance. A grandparent who gives £2,500 to their grandchild on the occasion of the grandchild's first marriage can give another £2,500 to the same grandchild on a second marriage. Each marriage triggers a new s22 allowance. However, the gift must be 'in consideration of' the specific marriage — a general gift 'to help you settle down' around the time of the wedding may not qualify if it is not directly linked to the marriage occasion. The annual exemption (£3,000) resets each tax year regardless of marriages.
Can the marriage gift exemption be used alongside a gift from the estate?
Where the donor dies within 7 years of making a marriage gift, the gift is still reported on IHT403 as a lifetime gift — but the s22 exemption is claimed to reduce the amount entering the running total (NRB calculation). The marriage gift exemption applies whether or not the donor survives 7 years — it is not a PET, it is immediately exempt. If the donor gives more than the s22 limit (e.g. a parent gives £20,000 for a child's wedding), the first £5,000 is exempt under s22, the next £3,000 under the annual exemption if available, and the remaining £12,000 is a PET starting the 7-year clock.
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