I have never sent anything to HMRC relating to any gifts that my mother has made. For these 'Gifts from Income' annual declarations (for want of a better title), I print it out each year and ask her to sign it. The signed copy is then kept in her tax file. As we have been doing this for about 12 years now, they slowly become redundant (after 7 years). Similarly columns/rows in the two spreadsheets slowly 'scroll into history'.

Essentially, I'm trying to create an 'audit trail' that will withstand any reasonable scrutiny by HMRC. I created similar declarations by my father, but they were never sent to HMRC. I submitted only the required IHT403 forms for probate - nothing else was ever required or asked for.

My intention is that, when the time arrives, I shall give the two spreadsheets (edited to the most recent 7 year period) to the solicitor whom we appoint to apply for probate (I shan't do all the work myself this time - there are more beneficiaries and I wish it to be done by an independent person).

@ Steve U
I can't answer your specific question. I suspect the IHT403 form dates back originally to 1986 and/or the law changed then.

However, in terms of IHT gifts, HMRC is only interested in gifts made within the 7 years before death.

BUT, there is another (obscure) rule concerning trusts (certainly Discounted Gift Trusts) which means that if a PET is made within 7 years of the trust being set up, then the '7 year clock' for the trust is reset to zero. So you could have to wait 14 years before the trust's IHT value finally tapers to zero.

I am not an accountant/tax advisor etc, so if you think this is relevant to you then DYOR, or consult a suitable advisor.

Reading the above has raised another question
I have a credit card and wife and sons have cards on the account as well
All cards have the same account number
So both my sons will buy major items like computer mobile phone holidays season tickets etc on the card
( they advise me in advance)
Each will probably spend £10K - £15k+ per year which I end up paying
Where would this fit in the scheme of things
Is it a gift or as its all on my card and account it counts as my spending
Any thought or observations
Thanks in advance
Also a very informative thread

Sorry, but you are living in fantasy land if you think that wheeze somehow drives a coach-and-horses through HMRC's rules on gifting. It'd surely be considered as a gift from you to them, of the amount of their spending you pay for. (Other reliefs may apply, of course.)

My view:
When you do your Self-Assessment (Tax Return) each year you list all your income which may be any/all of the following (and some other things):

Salary
State Pension
DB pension income/annuities.
SIPP Drawdown
Interest from UK Banks
Interest from Overseas sources
Interest from UT/OEICs
Interest from IT's
BTL/Property Fund/REIT Distributions
Dividends from Shares/ITs
Dividends from UT/OEICs
Other income

All of this is Income and is assessed for tax as such.

You might/will receive income which is non-taxed (from ISAs/VCTs etc.)

Gifts from Income is allowable from the surplus of income over regular expenditure
'Return of Capital' e.g. from Discounted Gift Trusts or from insurance bonds is NOT treated as income.

So, @Alonso SIPP Drawdown (which you will already have paid income tax on is allowed).

I agree with Tim_D regarding the credit card question - it's a gift to them.