Making a gift of certain amounts of money or assets can be a valuable exemption from Inheritance Tax.
There are various additional ways to use your gift allowance, such as an annual exemption for gifting to an individual up to £3,000 per tax year. Using income to fund the contributions to a life policy held in trust, parents can each give up to £5,000 to each party of a marriage/civil partnership. Additionally, a lifetime gift of capital designed to maintain a dependent is exempt under certain circumstances.
Gifts to charities, political parties or for the public benefit, such as universities, national museums, and the National Trust are also exempt.
Please contact us to discuss your options further, as we are able to advise you on the best options available to suit your own personal circumstances.
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.