Making Gifts
Each person can make gifts totaling up to £3,000 per year
that are exempt from inheritance tax. Any excess over this amount
may be included in the estate of the person making the gift if
that person dies within 7 years of making the gift.
If you are looking for ways of reducing the inheritance tax that
will be payable on your estate, you should think about making
gifts of £3,000 per year to your loved ones (each individual
can do this so a couple can give away £6,000 – that
makes for a tax saving at current rates of £2,400).
Extra tip: you can carry the exemption forward for one year,
so if you haven't made any gifts in the last couple of years,
you can gift £6,000 this year - totally exempt.
Gifts of up to £250 per recipient per year may also be
made without having to worry about inheritance tax.
You can also do what you like with your income (as opposed to
your capital). So if you have income of £50,000 per year
after tax and only need £30,000 to live on, you can give
the rest to whoever you like without anyone having to worry about
the tax consequences.
For advice relating to your specific situation, please call
0845 652 5220 or use our contact
form.
This advice is of a general nature and may not be applicable
to your situation. Please contact us on 0845 652 5220 about your
specific circumstances.
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