I have a qs on the above topic. (apologies but there is no ATT forum for P6 paper)
If an individual is to make gifts out of normal income (and be able to prove they have sufficient income to maintain their standard of living), is this taxable? Or used up in the NRB when doing the IHT computation?
It is the gifts that are normal / regular and if made out of income without impacting on the normal standard of living for the taxpayer then the gifts are exempt – thus using neither the NRB nor the AE of the taxpayer