{"id":122,"date":"2017-01-26T00:00:00","date_gmt":"2017-01-26T00:00:00","guid":{"rendered":"http:\/\/duffyregan.wpengine.com\/index.php\/2017\/01\/26\/gifts-and-inheritance-tax-reliefs-and-exemptions\/"},"modified":"2017-01-26T00:00:00","modified_gmt":"2017-01-26T00:00:00","slug":"gifts-and-inheritance-tax-reliefs-and-exemptions","status":"publish","type":"post","link":"http:\/\/duffyregan.co.uk\/index.php\/2017\/01\/26\/gifts-and-inheritance-tax-reliefs-and-exemptions\/","title":{"rendered":"Gifts and Inheritance Tax reliefs and exemptions"},"content":{"rendered":"<p>There&rsquo;s usually no Inheritance Tax to pay on small gifts you make out of your normal income, such as Christmas or birthday presents. These are known as &lsquo;exempted gifts&rsquo;.<\/p>\n<p>There&rsquo;s also no Inheritance Tax to pay on gifts between spouses or civil partners. You can give them as much as you like during your lifetime &#8211; as long as they live in the UK permanently.<\/p>\n<p>Other gifts count towards the value of your estate. There may be Inheritance Tax to pay if you&rsquo;ve given away more than &pound;325,000, but only if you die within 7 years.<\/p>\n<p>Inheritance Tax on gifts is paid by the person who received the gift (the &lsquo;beneficiary&rsquo;) &#8211; not the estate.<\/p>\n<h3><strong>What counts as a gift?<\/strong><\/h3>\n<p>A gift can be:<\/p>\n<ul>\n<li>anything that has a value, such as money, property, possessions<\/li>\n<li>a loss in value when something&rsquo;s transferred, for example if you sell your house to your child for less than its worth, the difference in value counts as a gift<\/li>\n<\/ul>\n<h3><strong>Exempted gifts<\/strong><\/h3>\n<p>You can give away &pound;3,000 worth of gifts each tax year (6 April to 5 April) without them being added to the value of your estate. This is known as your &lsquo;annual exemption&rsquo;.<\/p>\n<p>You can carry any unused annual exemption forward to the next year &#8211; but only for one year.<\/p>\n<p>Each tax year, you can also give away:<\/p>\n<ul>\n<li>wedding or civil ceremony gifts of up to &pound;1,000 per person (&pound;2,500 for a grandchild or great grandchild, &pound;5,000 for a child)<\/li>\n<li>normal gifts out of your income, for example Christmas or birthday presents &#8211; you must still be able to maintain your standard of living after making the gift<\/li>\n<li>payments to help with another person&rsquo;s living costs, such as an elderly relative or a child under 18<\/li>\n<li>gifts to charities and political parties<\/li>\n<\/ul>\n<p>You can use more than one of these exemptions on the same person &#8211; for example, you could give your grandchild gifts for her birthday and wedding in the same tax year.<\/p>\n<p>You can give as many gifts of up to &pound;250 per person as you want during the tax year as long as you haven&rsquo;t used another exemption on the same person.<\/p>\n<h3><strong>The 7-year rule<\/strong><\/h3>\n<p>If there&rsquo;s Inheritance Tax to pay, it&rsquo;s charged at 40% on gifts given in the 3 years before you die.<\/p>\n<p>Gifts made 3 to 7 years before your death are taxed on a sliding scale known as &lsquo;taper relief&rsquo;, however, gifts are not counted towards the value of your estate after 7 years.<\/p>\n<!-- -->","protected":false},"excerpt":{"rendered":"<p>There&rsquo;s usually no Inheritance Tax to pay on small gifts you make out of your normal income, such as Christmas or birthday presents. These are known as &lsquo;exempted gifts&rsquo;. There&rsquo;s also no Inheritance Tax to pay on gifts between spouses or civil partners. You can give them as much as you like during your lifetime [&hellip;]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-122","post","type-post","status-publish","format-standard","hentry","category-uncategorised"],"_links":{"self":[{"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/122","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/comments?post=122"}],"version-history":[{"count":0,"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/122\/revisions"}],"wp:attachment":[{"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/media?parent=122"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/categories?post=122"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/tags?post=122"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}