Gifting at Christmas – How about using your inheritance tax gift allowances?

Published: 11/12/2019

Written by Curwens Solicitors

Inheritance tax is payable on your estate on death and on certain gifts made during your lifetime.

The amount of tax you pay is usually 40%. We all have an amount we can give away without paying tax – this allowance is currently £325,000, and available on death, provided it has not been set against any gifts made in the preceding 7 years. If you make a gift during your lifetime – then there will be no IHT to pay however generous the gifts are, provided you survive 7 years of making the gift. If you die within this period the gifts are taken into account although the tax you pay may be tapered.

However the government allows you to make certain gifts that are exempt from inheritance tax (IHT) in addition to other gifts you may make during your lifetime.

These are:

£3,000 annual exemption – up to this amount and if you have not used this allowance the previous tax year then you can roll it forward one year only, gifting £6,000 instead of £3,000.

£250 small gift exemption – you can give up to this amount to as many people as you want; but not to someone who has already received the whole of the £3,000 gift allowance – useful if you have lots of grandchildren.

Gifts to UK charities are exempt from IHT.

£5,000 - up to this amount for wedding gifts from parents; £2500 from grandparents provided the wedding has not taken place yet and that it happens.

What about a gift for you?

If you have not done so already, why not make a will and give yourself the peace of mind that you have ensured that those you wish to benefit from your estate do so.

For advice on Inheritance Tax Planning please contact our private client team on 020 8363 4444.

Please note this blog and any information contained in it is for guidance purposes in it, facts are correct at the time of publication.

Please note that our briefings are for informational purposes only, and do not constitute legal advice.

testimonials

Bradley of Curwens is the most highly efficient, sharp and highly skilled conveyancer I have ever used. My sale went through quickly and effortlessly with no stress at all. Conveyancing at its best. Hurrah and Thank you.

Katie from North London

Kaajal at Curwens was terrific - really friendly and unintimidating, patient in explaining the legal-speak of the severance agreement I was being asked to sign, while also being extremely efficient in processing it all! I would unreservedly recommend Kaajal and Curwens to anybody looking for friendly and painless help with any potentially daunting legal process.

Mike from Palmers Green

We had a very good experience on our house sale with Maryam and Christina. They were knowledgeable, courteous and understanding throughout. I would definitely recommend them and have no hesitation using Curwens again for any legal representation!!

The Thompsons from Finchley

I would highly recommend Curwens. They handled the probate on my late father’s estate in a highly professional manner and explained the whole process clearly. The staff are friendly and kind and dealt with any issues I had promptly. Thank you. Much appreciated.

John from Harlow

I would like to thank the Employment team, and especially Kaajal for assisting me during my redundancy. She remained calm, when I was upset and shocked. The whole process was dealt with within one week, meaning I could go on to find further employment.

Pritti from Surrey

Our purchase was sabotaged by XXXXXXXXXX, and our mortgage offer had expired. Luckily, our lender gave us a one week extension of the mortgage offer. Curwens took over, and magic happened. We completed the purchase on time. Best Service ever!

William from London

I would like to thank you Amanda for all your support during this process. I felt very pleased you were my solicitor, you gave me confidence and reassurance, I felt in very safe hands.

Anonymous

You have helped us on a fair few issues now. On every occasion you have made us feel like we were your only client at the time… we couldn’t have got through our HR situations without your guidance.

HR Director, Milbridge Group PLC

I just wanted to say thank you for all of your help with getting our office lease done. Bradley, Sandra and Sarah were so responsive and it was a pleasure working with you.

Clinton Gomer, Energy House Digital

‹ ›

GET IN TOUCH

Any data that you submit using this web form will be held by our firm as Data Controller and will be held securely for 12 months before being securely and confidentially destroyed.
Find out more Your data will not be disclosed to any third parties without your consent or as otherwise allowed by the relevant Data Protection legislation and will only be used for responding to your query (or purposes associated with that purpose).

You have the right to be informed about what data we hold about you along with other rights set out in the legislation. Further information about your rights under the data protection legislation can be found at www.ico.org.uk

Full details can be found here

(*)

Please let us know your name.

(*)

Please enter a valid phone number

(*)

Error, invalid email address or address already exists in a contact request.

Invalid Input

(*)

Please select an office

(*)

Please let us know your message.

CURWENS NEWS

Why the right Commercial Agreements can be a foundation for your business success 16/12/2024 Read more

Law Update: The Renters Rights Bill 17/12/2024 Read more

Why a “fair” division of matrimonial assets might not actually mean an “equal” split. 18/12/2024 Read more

View all latest news

testimonials

Katie from North London

Mike from Palmers Green

The Thompsons from Finchley

John from Harlow

Pritti from Surrey

William from London

I would like to thank you Amanda for all your support during this process. I felt very pleased you were my solicitor, you gave me confidence and reassurance, I felt in very safe hands.

Anonymous

HR Director, Milbridge Group PLC

I just wanted to say thank you for all of your help with getting our office lease done. Bradley, Sandra and Sarah were so responsive and it was a pleasure working with you.

Clinton Gomer, Energy House Digital

‹ ›

GET IN TOUCH

(*)

Please let us know your name.

(*)

Please enter a valid phone number

(*)

Error, invalid email address or address already exists in a contact request.

Invalid Input

(*)

Please select an office

(*)

Please let us know your message.

Blogs