By Holly Thomas in SAGA Magazine.
Worried that your hard-earned savings and precious assets may eventually benefit the taxman rather than your loved ones? A little forward planning can make a big difference.
Handing over cash or property can provide a much-needed boost for grandchildren who are hoping to get on the property ladder or for other relatives and friends who are struggling or trying to look after expensive families. It can also be a legitimate way of reducing your inheritance-tax (IHT) liability.
HMRC raked in a record £4.84 billion in IHT last year, fuelled by growing property prices and an estate threshold – above which you’re liable for 40% tax – that’s remained at £325,000 per person since 2009 (£650,000 for a married couple or civil partners as long as the first person to die leaves their entire estate to their partner).
So here’s everything you need to know about gifting to your family and friends. After all, why should you pay more to the taxman than you have to?
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