IHT403, Gifts and other transfers of value
Form IHT403 tells HMRC about gifts the deceased made, including gifts in the seven years before death and gifts with reservation of benefit. Fill in the official PDF below.
This is the genuine HMRC PDF, unmodified. Source: HMRC official page.
What is IHT403?
IHT403, Gifts and other transfers of value, is the schedule to the IHT400 that discloses what the deceased gave away. HMRC asks about gifts made on or after 18 March 1986, with particular attention to the seven years before death, because those gifts can still be brought back into the Inheritance Tax calculation.
The form also covers gifts with reservation of benefit, where something was given away but the deceased carried on using it, and pre-owned assets. It includes the table for regular gifts made out of surplus income, which sets out income, expenditure and the gifts themselves year by year so the normal expenditure out of income exemption can be judged.
Who files IHT403?
- Personal representatives of an estate where the deceased made gifts in the seven years before death
- Executors reporting a house or other asset given away while the deceased kept using it
- Families claiming the normal expenditure out of income exemption for regular gifts
- Practitioners completing an IHT400 pack that includes lifetime transfers
How to fill out IHT403
- List gifts made in the seven years before death, with the date, the recipient, a description and the value at the time of the gift.
- Record any exemptions claimed against those gifts, such as the annual exemption or gifts on marriage.
- Answer the gifts with reservation questions if the deceased continued to benefit from something they had given away.
- Complete the income and expenditure table if you are claiming the normal expenditure out of income exemption.
- Download the finished PDF and post it with the IHT400 to Inheritance Tax, HM Revenue and Customs, BX9 1HT.
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Frequently asked questions
Do small gifts have to be listed?
HMRC asks you to include gifts that are not covered by an exemption. Read the notes on the form: some routine gifts fall inside the annual or small gifts exemptions, but the safest approach is to disclose and then claim the exemption.
What is a gift with reservation of benefit?
It is a gift the deceased kept the use of, such as giving a house to a child but continuing to live in it rent free. Those assets are usually treated as still part of the estate.
Where do regular gifts out of income go?
On the income and expenditure table in this form. It shows that the gifts were part of the deceased’s normal spending and left enough income to keep their usual standard of living.