Make the most of tax free gifts

Grovelawn Financial News 24/01/2008

← Property prices more affordable | News For January 2008 | FSA may not be given additional powers →

Avoid unnecessary inheritance tax

It has become harder to avoid large inheritance tax liabilities when most people's properties can be worth enormous amounts of money. For the most detailed and accurate advice, it is a good idea to seek professional help, this can in the long run save you thousands and also enable you to make regular gifts that will not affect your IHT. Although the government has invested a lot of time and resources in cracking down on complex, but legal, schemes, there are still areas that can be legally explored to minimise your liabilities.

During each tax year you are entitled to give away £3,000 worth of assets, effectively taking this amount out of your total estate. You can carry forward ana cmount if you do not use your allowance during one year. You may also choose to give away gifts of up to £250 to as many people as you like. You could give your children £5,000 on the occasion of their wedding and grandparents can give £2,500. If you survive for seven years after giving gifts the gift will remain exempt from IHT. If you die within the seven years and the total value of the gift is more than £300,000 threshold, you can apply taper relief to any tax you owe. Gifts given to charities and political parties, husbands and wives are free from inheritance tax

← Property prices more affordable | News For January 2008 | FSA may not be given additional powers →

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