Inheritance Tax and Lifetime Gifts

Common exemptions to Inheritance Tax (IHT):

  • Gifts between spouses (Except if a British domicile passes his estate to his or her non domicile spouse, where the allowance is the Nil Rate Band (NRB) plus £325,000, presently £650,000)
  • Gifts to charities and political parties (Go to the gifts to charities page to understand how the reduced rate of IHT at 36% applies if you make charitable gifts, which might well reduce the overall cost to your net estate)
  • Annual gifts of £3,000 per donor (Therefore, a husband and wife can give away £6,000 each year)

Potentially exempt transfers (PETs)

Unlimited gifts to individuals (For example to your children, provided that you see no further benefit and live for a further 7 years)

Transfers to trusts for the benefit of others

Transferring assets to trusts for the benefit of others (excluding your spouse), of up to the present Nil Rate Band (£325,000) every 7 years. Husband and wife can gift up to £650,000 each for the benefit of their children and grandchildren every 7 years.

The above list is not exhaustive and we recommend that you contact us for further information on your particular situation.

Click here if you would like a conversation with one of our advisers on Inheritance Tax
Without a Will, you are deemed to die Intestate – this means legislation from nearly 100 years ago decides who benefits from your estate. If you are married with children, your spouse may only inherit the first £250,000 of your personal estate absolutely.

Putting in place a Will ensures that you choose who benefits from your estate. You also can appoint Guardians – people who you choose to bring up your children in the event of your premature death.

Please get in touch with any questions you may have

Company Information

Inheritance Planning Company Ltd
18 Walsworth Road

T: 01462 61 66 87

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