PaulBullet wrote:Thanks PD
my original question was
This year he has had to put a new roof on his garage, the total costs was about 3-4,000, I would consider this not to be normal expenditure and as such I think he could use his savings to pay for this and then still gift the same amount to whomever he wishes. what are others views?
Paul
This discussion a while back might be of interest viewtopic.php?p=45426#p45426. It is a six page thread and covers a variety of matters and you may benefit from reading the entirety.
What I did include back then was this on a similar issue:
However, on the car purchase/capital expenditure front, I thought I'd look back at TMF. Somehow or other, I found this post by meldrewlives from 2010:
[link now broken]
It covers a conversation with the CTO and it includes:
On the expenditure side I did manage to clarify that 'one-off' non-recurring expenditure out of capital, e.g. buying a car one year, could be excluded. It was however pointed out that if one was in the habit of buying a new car every year then this becomes "normal expenditure" and should be included.
That's sufficient for my purposes, being LTB&H in so far as cars are concerned, and I will fully annotate my schedules, which are being prepared for my Executors, along those lines. They'll be using professional advice at the time, I'm sure, and should they decide that my IHT403 table is not worth a candle, that would be up to them. Having been an Executor using professional advice fairly recently, I was able to tell the solicitors, who asked the question, that I was aware of the question shown below and the IHT403 table and that it was not in point for the estate in question.
In any event, at the moment, I'm not at all convinced I can demonstrate a sufficiency of surplus income for these purposes (I'm also listing all appropriate gifts (within reason)) and will make it easier for them by telling them so.
At least my efforts will save my Executors from attempting or being tempted to recreate the position and they'll be able to see fairly clearly that the answer to the question on IHT403 of Are you claiming that gifts should be treated as exempt as 'gifts out of income'? would be a no (at least for the moment).
PD
PS The whole thread is presently here [link now broken] and, having found it, I've saved it here https://web.archive.org/web/20170412014 ... sort=whole. I've yet to study it fully, it includes some interesting comments on SIPPs, but I saw a Gordon Bennett! from someone when I mentioned the detail required for the IHT403 table.