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A little known tax planning scheme...
As with anything to do with tax you have to be careful with generalisations - yes its £325K but that is per person such that with a married couple one takes over the first to die's allowance if unused so it is really £625K before IHT kicks in (sorry..typo..meant £650!)
Also with gifts there is one little known, little used but very useful legal tax planning available under s21 IHTA 1984 - 'Normal gifts out of income'
There needs to be a pattern of giving but that does not have to be of any large amount and a 'pattern' is usually at 3 gifts. HMRC do like it to be a fixed amount or see a formula (e.g 10% of surplus income). Those gifts are in addition to PET's.
But this 'bubble' in house prices is a concern - unfair if someone dies now rather than next year.
I am of course presuming that the 'bubble will burst next year reducing the valuation of many properties.
It's £650k, not £625k
Also, the 'Normal gifts out of income ' IHT planning is not really helpful re the family home and other property and there is s191 IHTA 1984 relief re property bubbles.
There is lots of IHT planning available for the family home and other property if anyone wants to get in touch. www.ated.co.uk
Yes....I know...
I was not responding to the part of the text re properties rather to the final para re gifts.
For articles on PPR tax savings see here under accountingweb tab specially set up:
https://www.accountingweb.co.uk/category/tags/property-tax
and in particular my article on PPR here:
PPR What you need to know
https://www.accountingweb.co.uk/article/principal-private-residence-reli...