A gift made in consideration of a marriage or civil partnership is exempt from Inheritance Tax up to £5,000 if the giver is a parent of one of the couple, £2,500 if the giver is a grandparent or more remote ancestor or one of the couple, and £1,000 for anyone else. The limits apply per giver, per marriage, under section 22 of the Inheritance Tax Act 1984. The gift must be made on or shortly before the ceremony and must only take effect if the marriage or civil partnership goes ahead; a gift made afterwards usually does not qualify.

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What does the exemption cover?

Section 22(1) exempts transfers of value made by gifts in consideration of marriage or civil partnership, up to a limit for each transferor in respect of each marriage or civil partnership. HMRC’s manual at IHTM14191 summarises the conditions: the gift must be made on or shortly before the marriage or registration, to one or both parties, and must become fully effective when it takes place.

It can apply to lifetime gifts by individuals and to the lifetime ending of an interest in possession in a trust. It does not apply to deemed transfers when a reservation of benefit ends, or to amounts apportioned to shareholders on transfers by close companies (IHTM14191). The part of a gift covered by the exemption cannot later be taxed under the gifts with reservation rules.

The exemption is separate from the £3,000 annual exemption and the £250 small gifts exemption, which are explained on our page on the annual exemption and small gifts. This page looks at the wedding exemption in more depth: who counts for each limit, what makes a gift one made in consideration of marriage, and gifts through trusts.

Who gets which limit?

Giver Limit Statutory basis
A parent of either party £5,000 s22(1)(a)
A grandparent or more remote ancestor of either party, giving outright to their own descendant or to the other party, or settling the property £2,500 s22(1)(b), s22(2)(a) and (b)
One of the couple, giving outright to the other or settling the property £2,500 s22(1)(b), s22(2)(c)
Anyone else £1,000 s22(1)(c)

Section 22(2) says “child” includes an illegitimate child, an adopted child and a step child, and “parent”, “descendant” and “ancestor” are read accordingly. A step parent is therefore a parent for this purpose and has the £5,000 limit. GOV.UK puts the same rules simply: up to £5,000 to a child, £2,500 to a grandchild or great grandchild, and £1,000 to any other person.

The limits are per giver, so each parent has their own £5,000. Both of the bride’s parents and both of the groom’s parents could each give £5,000, a total of £20,000 for the couple. IHTM14191 confirms that the limit is the same whether the giver makes the gift to both parties or only one of them. Because the limit applies to each marriage, a person who remarries can receive further exempt gifts on the later marriage.

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What makes a gift one made in consideration of marriage?

The statute does not define the phrase, so HMRC applies the House of Lords decision in Rennell v IRC, summarised at IHTM14201. A gift must:

  1. be made on the occasion of the marriage or civil partnership;
  2. be conditional on the marriage or civil partnership taking place; and
  3. be made for the purpose of, or with a view to encouraging or facilitating, the marriage or civil partnership.

The third condition does not apply where the gift is to one of the spouses or civil partners and nobody else (Re Park (No 2)), which covers most ordinary wedding gifts.

Timing is where most claims fail. IHTM14201 says gifts made after the ceremony do not qualify unless they fulfil a binding promise made before it. HMRC will assume a binding promise if the giver definitely told the recipient beforehand that the gift would be made if the marriage took place. If the giver started the process before the wedding, for example by instructing a solicitor or broker, but the transfer completed afterwards, the gift only qualifies if the recipient was told about it beforehand.

Where the marriage has taken place and the first condition is met, HMRC will assume the second condition is satisfied unless there is evidence to the contrary. A cheque handed over a week before the wedding with a card saying it is a wedding present is the typical qualifying gift.

Who can receive the gift?

For an outright gift, section 22(3) requires the recipient to be a party to the marriage. IHTM14211 explains that if some of the recipients are not parties, the gift is apportioned and only the part going to the couple is exempt. IHTM14212 adds that if a party receives the gift under a legal obligation to pass it to someone else, the exemption is not due, although a purely voluntary onward gift is disregarded.

Gifts into trust are allowed, but section 22(4) is strict. Everyone who is or may become entitled to benefit must fall within the permitted classes, which include the couple, any child of the family and the spouse or civil partner of such a child, a later spouse or civil partner of either party, certain people entitled if trusts for children fail, protective trusts, and the trustees as regards reasonable remuneration. Section 22(4A) defines a child of the family as a child of one or both of them. Unlike outright gifts, IHTM14211 says there is no apportionment: a single non qualifying potential beneficiary loses the exemption for the whole settlement.

The exemption can also cover the ending of a life interest in a trust in consideration of marriage. IHTM14221 says the person whose interest ends should give notice to the trustees stating how much of the exemption is available.

How does it combine with other exemptions?

GOV.UK says a wedding gift can be combined with any other allowance for the same person except the small gift allowance. A parent can therefore give £5,000 for the wedding and £3,000 under the annual exemption in the same tax year, with any unused annual exemption from the previous year added. Under section 20 and IHTM14180, the £250 small gifts exemption is lost entirely for a recipient who receives more than £250 in the year, so it cannot sit on top of a wedding gift to the same person. Regular gifts out of surplus income can also be combined.

Gifts between the couple after the ceremony usually need no wedding exemption, because gifts between spouses and civil partners are exempt where the conditions in our page on the spouse exemption are met. IHTM11032 confirms that couples living together who are not married or in a civil partnership are not spouses.

What happens to a gift above the limit?

Section 22(1) makes the gift exempt up to the limit and the excess chargeable. For an outright gift to an individual, the excess is normally a potentially exempt transfer. It drops out of account if the giver survives 7 years; if they die within 7 years it is added back, with taper relief reducing the tax on gifts made more than 3 years before death where the total exceeds the nil rate band. See the seven year rule.

Illustration only. Sam’s mother, who has made no other gifts this tax year, gives £8,000 a fortnight before the wedding, his grandfather £2,500, and his godmother £1,500. The mother’s gift is £5,000 wedding exemption plus £3,000 annual exemption, so it is fully exempt. The grandfather’s £2,500 is fully exempt. The godmother has a £1,000 limit, so £500 is a potentially exempt transfer unless her annual exemption covers it.

Does Capital Gains Tax apply to wedding gifts?

A gift of shares, a property or valuables is a disposal for Capital Gains Tax at market value on the date of the gift, and the Inheritance Tax wedding exemption does not change that. See gifts and market value.

What mistakes come up most often?

  • Making the gift after the wedding with no promise beforehand.
  • Paying the money to someone other than the couple, or on terms requiring it to be passed on.
  • Setting up a wedding trust with a potential beneficiary outside the permitted classes.
  • Assuming an aunt or godparent has the £2,500 or £5,000 limit.
  • Claiming the small gifts exemption for the same person as well.
  • Keeping no record of the date, amount and wedding date; see keeping records of lifetime gifts.

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Sources

Reviewed by Christine Anderson, Broker, Solar Protect. Last reviewed 24 October 2026. Part of Accountapedia, the Solar Protect guide to UK tax and accounting. This page is general information, not personalised advice.