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Tax planning doesn’t have to be complicated

Posted on Thursday, 11th September 2014 by
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5 simple Inheritance Tax planning tips

  • Transfers to spouses are tax free – any transfers to spouses do not attract inheritance tax.  It may be useful as part of your income tax and capital gains tax planning for one spouse to own more of an asset than the other.  This would take full advantage of personal allowances for income tax and annual exemptions for capital gains tax.
  • Give away up to £3000 per year tax free – You can give away £3000 per year each inheritance tax free. This is in total and not per recipient.  It is wise to keep a record of these gifts to produce if ever required to do so.
  • Cash Gifts – You may choose to make a larger gift of cash to your loved ones.  There would be no inheritance tax to pay immediately if this is a gift of cash and it is not being paid into a trust.  If you then survive seven years, there will be no inheritance tax to pay on this amount on your death either.
  • Marriage gifts – Gifts made to a couple as a wedding gift are inheritance tax free.  A parent can give their child up to £5000 whilst a grandparent can give a grandchild up to £2500 without paying inheritance tax. These can be made in addition to the £3000 per year gifts mentioned above.
  • Leave money to Charity – If you are considering leaving any of your money to charity, you could reduce the total amount of inheritance tax payable on your death to from 40% to 36%.  In order to take advantage of this, you have to leave at least 10% of your estate to Charity.

If you would like to explore any of these options further or wish to discuss your Inheritance Tax situation, please contact us today!

Kate Godber is one of our Solicitors in Market Harborough, all of whom are experts in their fields and dedicated to quality client care. If you would like to find out more about our solicitors in Market Harborough please contact us.

The information provided in all of our blogs reflects only a narrative of some elements to consider on the topic. The blogs do not contain considered legal advice and should not be relied upon as advice. Please see our website terms and conditions for full details of our disclaimer.  If you are interested in obtaining advice, please contact one of our solicitors who will be happy and able to advise you on your own particular circumstances.

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The information provided in all of our blogs reflects only a narrative of some elements to consider on the topic. The blogs do not contain considered legal advice and should not be relied upon as advice. Please see our website terms and conditions for full details of our disclaimer. If you are interested in obtaining advice, please contact one of our lawyers who will be happy and able to advise you on your own particular circumstances.

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