Readers' forum : Income giving

I think that my question is easier to understand as an example rather than as a theoretical question. My retired client has accumulated substantial savings and has an income of about £40 000 a year. After income tax and ordinary living expenses she has surplus income of about £20 000.

The client wishes to make regular gifts to charity and also to her children. If she gives £20 000 each year to her children and £20 000 to charity will she be entitled to the ‘normal expenditure out of income’ exemption for inheritance tax while at the same time claiming gift aid relief? On the one hand this seems to be in some way ‘double counting’ because gift aid is an income tax relief. However I can see nothing that requires the cash for a gift aid donation to come out of income.