Tax writer of the year John Newth solves your tax questions.
IHT exempt transfers
Gerald Lunn raised a question on 28 January 2007 about IHT exempt gifts to be made to the next generation. The taxpayer, say, has three sons, two daughters in law and seven grandchildren. In tax year 2006/2007 can the taxpayer give each son 2,000 each, and in addition make nine gifts of 250 each to each of the daughters in law and grandchildren? No capital gifts were made in year 2005/2006. On 6 April 2007 can the taxpayer give each son 1,000 each, and again nine gifts of 250 each to the other relatives?
Simpleson replied to this query, and suggested that the taxpayer might be able to do even better. If the taxpayer has sufficient income he could write a letter to the t...