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? 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.

Parents can give up to £5,000 every year to each member of a marriage or civil partnership. In certain circumstances a lifetime gift of capital, designed to maintain a dependant, might also be exempt.

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.

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.