{"id":570,"date":"2019-11-05T00:00:00","date_gmt":"2019-11-05T00:00:00","guid":{"rendered":"http:\/\/duffyregan.co.uk\/index.php\/2019\/11\/05\/gifts-and-inheritance-tax\/"},"modified":"2019-11-05T00:00:00","modified_gmt":"2019-11-05T00:00:00","slug":"gifts-and-inheritance-tax","status":"publish","type":"post","link":"http:\/\/duffyregan.co.uk\/index.php\/2019\/11\/05\/gifts-and-inheritance-tax\/","title":{"rendered":"Gifts and Inheritance Tax"},"content":{"rendered":"<p>When you make a gift to third parties you are potentially transferring part of your estate and a life-time charge to IHT may be applied.<\/p>\n<p>However, in most cases you will not need to open your cheque book as there are a number of exemptions that may cover your intended gifts.<\/p>\n<p>The current gift exemptions are reproduced below.<\/p>\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 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>&nbsp;<\/p>\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 have not used another exemption on the same person.<\/p>\n<p>Even if your gift is not excluded by these exemptions any tax payable can be deferred under the &ldquo;potentially exempt transfer&rdquo; or PETs. Essentially, as long as the person making the gift lives seven years after making the gift, no IHT is payable. A sliding scale applies if the donor dies during this seven year period.<\/p>\n<!-- -->","protected":false},"excerpt":{"rendered":"<p>When you make a gift to third parties you are potentially transferring part of your estate and a life-time charge to IHT may be applied. However, in most cases you will not need to open your cheque book as there are a number of exemptions that may cover your intended gifts. The current gift exemptions [&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-570","post","type-post","status-publish","format-standard","hentry","category-uncategorised"],"_links":{"self":[{"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/570","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=570"}],"version-history":[{"count":0,"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/570\/revisions"}],"wp:attachment":[{"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/media?parent=570"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/categories?post=570"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/tags?post=570"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}