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Give to charity to reduce your inheritance tax bill

2019-08-23T16:24:08+01:00August 27th, 2019|Categories: Blog, Taxation|Tags: , , , |

Making gifts to charity can be an effective way to reduce the amount of inheritance tax (IHT) payable on your estate. Charitable gifts can work to reduce the IHT payable in two ways: reducing the value of the net estate chargeable to IHT; or where the gifts to charity are worth at least 10% of the net estate at death, reducing the rate at which inheritance tax is payable. Lifetime gifts and bequests on death made to qualifying charities and registered housing associations are exempt from inheritance tax, provided that the gift was made outright. Qualifying charities A qualifying [...]

July Questions and Answers

2019-09-02T11:32:29+01:00July 23rd, 2019|Categories: Questions & Answers|Tags: , , , , , |

Q. If my husband and I give our house to my children but continue to live in it, will inheritance tax be chargeable on the property when we die? A. The inheritance tax residence nil rate band (RNRB), which is currently being phased, is designed to help people in your position to pass on the family home to children or grand- children, tax-free after their death. Broadly, where someone dies on or after 6 April 2017 and their estate is above the basic inheritance tax threshold (currently £325,000), the estate may be entitled to an additional threshold before any inheritance [...]

Give from income to save inheritance tax

2019-09-02T11:29:18+01:00July 6th, 2019|Categories: Articles & Guides, Blog, Taxation|Tags: , , |

Within a family scenario, there are many situations in which one family member may make a gift to other family members. However, the way in which gifts are funded and made can make a significant difference to the way in which they are treated for inheritance tax purposes. Not all gifts are equal There is no inheritance tax to pay on gifts between spouses and civil partners. A person can make as many lifetime gifts to their spouse or civil partner as they wish (as long as they live in the UK permanently). There is no cap on the [...]

Making use of gift exemptions for IHT

2019-09-02T11:23:11+01:00June 14th, 2019|Categories: Blog, Personal Finance, Taxation|Tags: , , , , |

According to a recent survey undertaken on behalf of HMRC, only 25% of people making financial gifts have a working knowledge of inheritance tax (IHT) rules surrounding such payments. The report entitled Lifetime Gifting: Reliefs, Exemptions, and Behaviours, reveals a significant lack of awareness of the gifting rules, liability for inheritance tax and the risk of making financial gifts without considering tax rules, which can apply for any gifts over £3,000 in value in a given tax year. The research also revealed that those with potentially smaller estates (below £500,000) appear to have a limited knowledge of the longer-term reach of inheritance [...]

January 2019 Questions and Answers

2019-09-01T23:09:11+01:00January 24th, 2019|Categories: Questions & Answers|Tags: , , , , |

Q. What should I do about an error I accidently made on my latest VAT return? A. You can adjust your current VAT account to correct errors on past returns if the error: - was below the reporting threshold (in broad terms this is less than £10,000, or up to 1% of your box 6 figure (up to a maximum of £50,000); - was not deliberate; and - relates to an accounting period that ended less than 4 years ago. When you submit your next return, add the net value to box 1 for tax due to HMRC, or to [...]