Cross border gifts and UK inheritance tax

I'm a US/UK dual citizen living in the US. I've been making gifts to UK resident family members in line with the IRS annual gift tax exclusion for some years now. I haven't kept track of these gifts as the IRS doesn't require it. If I move back to the UK will these gifts count against the UK 7 year inheritance gift tax allowance?

I'm a US/UK dual citizen living in the US. I've been making gifts to UK resident family members in line with the IRS annual gift tax exclusion for some years now. I haven't kept track of these gifts as the IRS doesn't require it. If I move back to the UK will these gifts count against the UK 7 year inheritance gift tax allowance?

I don't know if IHT is calculated from before you become UK tax resident, but in any case if you have a high enough income then the gifts you have been giving out may be exempt anyway. Start keeping track now and don't die within the next 7 years

https://assets.publishing.service.gov.uk/media/5f60b44cd3bf7f7234487bf0/IHT403-05-20.pdf

See box 6 on page 1 and then the spreadsheet on page 8.  If you haven't kept track of the gifts and now don't know then the chances of your executor trolling through your bank accounts and finding out is going to be very difficult.

I keep a spreadsheet that mimics the IHT403 form and once a year print a copy and store it with our wills.  This is to help the executor. Between us my wife and I have 8 pensions, rent from 2 properties plus dividends and interest from Roth IRAs so the gifts we give each year are classed as exempt due to being gifts out of excess income.

I'm doing IRA to ROTH conversions to take me up to the top of the 24% tax bracket...so annual taxable income ~$190k. my annual spending is maybe $30k, however, can I really gift $160k? That's my excess income, but not expenditure.

I'm doing IRA to ROTH conversions to take me up to the top of the 24% tax bracket...so annual taxable income ~$190k. my annual spending is maybe $30k, however, can I really gift $160k? That's my excess income, but not expenditure.

No, because selling assets is not listed as acceptable income for this which is what you are doing with IRA to Roth conversions. Dividends from IRAs is acceptable income because you are not selling assets.

No, because selling assets is not listed as acceptable income for this which is what you are doing with IRA to Roth conversions. Dividends from IRAs is acceptable income because you are not selling assets.

OK so if I have $90k from dividends, interest and pensions I could gift $60k? I was confused by the use of income and expenditure, but it seems that if i make a habit of gifting every year then that is "gift from excess income" for HMRC.

Still the question is, is any of this retroactive if I move to the UK. I've giving almost $60k/year right now to my 3 nieces, but I did plan to start including their kids as well and I wondered if the 7 year look back would apply to all these payments if I move to the UK.

OK so if I have $90k from dividends, interest and pensions I could gift $60k? I was confused by the use of income and expenditure, but it seems that if i make a habit of gifting every year then that is "gift from excess income" for HMRC.

Still the question is, is any of this retroactive if I move to the UK. I've giving almost $60k/year right now to my 3 nieces, but I did plan to start including their kids as well and I wondered if the 7 year look back would apply to all these payments if I move to the UK.

I think the gifts from excess income is quite clear.

I have no idea about the resident/non resident status on the 7 year clock exemption clock. We have been resident in the UK for almost 9 years now (SHOCK!) so that is not a question that concerns me.

I think the gifts from excess income is quite clear.

I have no idea about the resident/non resident status on the 7 year clock exemption clock. We have been resident in the UK for almost 9 years now (SHOCK!) so that is not a question that concerns me.

The rapid descent of the US into a kakistocracy makes my question increasingly relevant. I'm increasing the amounts I give to UK relatives and with a US lifetime exclusion of $13M it won't be a worry for US taxes, but it would be good to know if things I do while a US resident will count against me when I move to the UK. It's probably a question for the paid experts.

FYI.
I found this post on "TaxationWeb" that addresses my potential situation. It says that there are no P.E.T and UK IHT tax issues for gifts given from non-uk sources by non-UK residents to UK residents. So basically I plan to gift money to relatives before I leave the US to get it out of my estate and avoid UK IHT...US IHT isn't an issue as the lifetime exclusion is so large.

https://www.taxationweb.co.uk/forum/pet-status-of-overseas-gifts-given-before-becoming-uk-resident-t50756.html

That’s good news for you and your nieces.