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Your Home is at risk if you do not keep up any mortgage or payments secured upon it!

You should remember that past performance is not necessarily a guide to the future. Market and currency movements may cause the value of units, and the value derived from them, to fall as well as rise and you may get back less than you invested when you decide to sell your units. The tax treatment of investments and pensions is not guaranteed and may change in the future.  

INHERITANCE TAX

Give Assets Away If you are considering making gifts, initially it could make sense to use the exemptions that are available to immediately reduce the estate. The main ones currently available per individual are as follows: -

Main Exemptions

Transfers to Partners. Anything between husband and wife or couples registered under Civil Partnership is completely free of lHT for UK domiciled individuals.


Nil rate band £325,000 per individual.


Normal Expenditure-Regular gifts out of normal income that do not affect your normal standard of living are immediately allowable.


Small Gifts Exemption (£250)-You can give up to £250 per tax year to any number of donees. However such a gift must be made outright to one person and must not form part of a larger transfer.  


Gifts On Marriage.

£5,000 If the donor is a parent of the party to the marriage.

£2,500 If the donor is a remote ancestor. e.g. grandparent of the party to the marriage.

£2,500 If the donor is the bride or groom and the gist is made to the prospective spouse.  

£1,000 If the donor is any other person


Gifts for Education and Maintenance.

Lifetime transfers to a spouse for his or her maintenance are exempt, as are certain payments for a child’s maintenance, education or training.    


Gifts for the National Benefit:- i.e. Museums, Libraries, Universities etc


£3,000 Annual Exemption- If you have not used your previous years exemptions, it is possible to gift £6,000 (£3,000 for this year and £3,000 for last year) and £3,000 pa for future years.


Gifts to Charities and Political Parties:- These need to be outright but there are some exemptions where the gift is not outright.


Business Property Relief.

This is available for transfers of business property, for example a family business. The property has to be owned for two years before the transfer to qualify as a business property. Not all business property is qualifying so detailed information is required to determine the assets exempt.


Agricultural Property Relief.

The relief can be up to 100% for owner-occupied farms and farm tenancies.  


Seven Year Rule

There is no limit to the amount that you can give away. If you survive the seven years all gifts made 7 years previously would fall outside of the estate. This rule also applies if you gift money into a trust. If there were a death within the 7 years, only gifts made in excess of the nil rate band (£325,000) would be eligible for a possible reduction in the tax

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