Gifts out of normal expenditure

Such gifts, to qualify, comply with the following conditions:

• They were part of your normal expenditure.
• Taking one year with another they were out of your income - in other words, fluctuating income is catered for as long as, over the years, your surplus income can be evened out so as to produce sufficient cover.
• You are left with enough income to maintain your usual standard of living

Such gifts need not necessarily be repetitive, though this helps. The test of "normality" is said to be qualitative not quantitative, but a pattern of continuity must be established. "One-off" gifts will not qualify.

Income which is reinvested in your ISA can be taken into account.

You should take advantage of this useful exemption, but must be prepared for the eventuality that the Revenue will scrutinise the position if any of these gifts occur within seven, or possibly even fourteen, years before your death. This is why record keeping is important.

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