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Gifting assets can reduce the size of an estate for IHT purposes. You can gift up to £3,000 a year. which is immediately exempt from IHT or £6,000 if you did not make a gift in the previous tax year.
You can gift £250 to any number of people every year, but this can not be combined with the annual £3,000 exemption.
Parents can gift £5,000 to their children in contemplation of a wedding, Grandparents can give £2,500 and anyone else £1,000.
If gifts are made on a regular basis out of income, and do not affect your standard of living, they can be ignored for IHT.
Gifts to registered charities and political parties are exempt.