Gifts

When it comes to taking full advantage of Inheritance Tax exemptions, gifting can be a valuable option.

There are several approaches you can take. We can help you to understand which are available and which are best suited to your circumstances.

For example, are you aware that you have a £3,000 annual exemption for gifting, which can be carried forward for one year if unused? You can also use income to fund the contributions to a life policy held in Trust*, which can be exempt if you meet certain criteria.

A parent can gift up to £5,000 tax-free to their child who is getting married.

More exemptions include gifts to charities, and donations to political parties or institutions that exist for public benefit, such as universities, national museums, and the National Trust.

Larger gifts, which sit outside the general IHT exemptions noted above, can also have an inheritance tax (IHT) benefit where, generally speaking, the gift is made more than seven years before death.

The information on this website is based on our interpretation of current law and HMRC practice.

Taxation legislation and HMRC practice may be subject to unforeseen changes.

*Trusts are not regulated by the Financial Conduct Authority.

Got a question?

Do get in touch with us if you need a bit more information about these services, or any of our other financial planning advice.