Inheritance Tax UK: How gifting could be the ‘sensible’ decision to help family members

Inheritance Tax UK: How gifting could be the ‘sensible’ decision to help family members

Finally, gifts can also be made from normal expenditure out of income, but these conditions must be met:

  • the gift must be out of income, not capital
  • it must be a regular gift
  • it must not reduce a person’s standard of living.

Mr Rushton explained this could be a good option for those who wish to regularly support their family, but advice should always be taken.  

Gifting, however, aside from helping family members, could also provide assistance to charities.

Many Britons have their favourite charities to give to at present, helping their passions, interests or hobbies, and as such, they may wish to leave a parting gift in their will.

This can be a win-win situation, allowing charities to benefit, but also Britons to have less to meet in IHT.

Mr Rushton added: “Gifting is a great way to help out charities, eight in ten of whom say they fear the crisis has negatively impacted their ability to deliver planned objectives over the next 12 months.

Published at Mon, 07 Dec 2020 04:01:00 +0000