Tax Planning Idea - Using lifetime gifts to family and friends to save IHT
There are many statutory exemptions and allowances that enable taxpayers to make gifts that can mitigate IHT including:
Many people will have heard of and used the 7 year rule. If someone makes a gift and survives 7 years then it becomes exempt from IHT. This can be a good
idea, but it is a huge oversimplification to rely on this because there are pitfalls to avoid using this approach and other potential ideas that can
be also used. If the intention is to start to make lifetime gifts, then a proper lifetime giving strategy should be considered.
As always, the key to successful tax planning is to seek advice as early as possible.
If you would like more information, or would like to discuss your tax affairs in more detail, please don't hesitate to contact our Tax Partners, Steve Crompton or Lucy Williams, on the details below: