IHTM14236 - Lifetime transfers: normal expenditure out of income: loans

Where the transfer of value arises from a loan of money (or other property), the taxpayer does not need to show that it formed part of usual expenditure or was made out of income.

Instead, the transfer is exempt under IHTA84/S29(4) if

• the transfer was a normal one on the part of the transferor (the lender), and
• the transferor was left with sufficient income to maintain their usual standard of living.

If you come across any such case, you should refer to Technical for advice.