We understand that you don’t give advice on detailed tax planning but can you give any further indication as to when Inheritance Tax is not paid?
Yes we can. The following gifts are free of tax:
- A gift to a spouse or Civil Partner who has property in the UK. That applies either to amounts in your Will or made in your lifetime.
- Gifts to a “qualifying” charity.
- If you survive for 7 years after making a gift to somebody, that gift is generally exempt from Inheritance Tax. If you die between 3 and 7 years after making the gift then tax is at a lower rate.
- You can give up to £3,000.00 each year. That is in addition to any other exemption.
- You can make small gifts of £3250.00 to as many individuals as to you like each year.
- If you give to somebody who is getting married or registering a Civil Partnership, then that gift can be exempt.
- If the estate contains a business, woodland or National Heritage property, then there is relief from Inheritance Tax.
A further way of mitigating Inheritance Tax can be to set up a Trust. However, we must make it clear that we do not advise on Trusts. This is a complex area where you would need to seek further professional advice.
Is there a further website which will give information on Inheritance Tax?
Her Majesty Revenue and Customs has a very helpful website. This is https://www.gov.uk/topic/personal-tax/inheritance-tax.