When it comes to taking full advantage of the exemptions on your Inheritance Tax, gifting can be one of the most valuable options available to you.
There are several approaches you can take with gifting. We can help you better understand which ones are available to you and which are best suited to your own individual circumstances.
There are different ways to approach this option. For example, are you aware that you have a £3,000 annual exemption for gifting? You can also use income to fund the contributions to a life policy held in Trust,* which may be immediately exempt if you meet certain criteria.Parents are able to give up to £5,000 every year to each member of a marriage or civil partnership.
And, in certain circumstances a lifetime gift of capital, designed to maintain a dependant, may also be exempt.
Further exemptions include gifts to charities, donations to political parties or institutions which exist for public benefit, such as universities, national museums, and the National Trust.
The information on this website is based on our interpretation of the current law and HMRC practice.
Taxation legislation and HMRC practice may be subject to unforeseen changes in the future.
*Trusts are not regulated by the Financial Conduct Authority.