When deciding what to give as Christmas gifts, the possibility of triggering an unintended inheritance tax liability is not one that immediately springs to mind. However, there are traps that may catch the unwary. Income or capital When making a gift, it is important to ascertain whether the gift is being made out of income…
Inheritance tax and spouses and civil partners
Special rules apply for inheritance tax purposes to married couples and civil partners. To ensure valuable tax reliefs are not lost, it is beneficial to consider the combined position, rather than dealing with each individual separately. Married couples and civil partners benefit from exemptions that are not available to unmarried couples. Inter-spouse exemption The main…
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It’s not too late to save tax this year
Whether you are employed or self-employed here are 7 last-minute tax planning tips that may save you money As the end of the 2018/19 tax year approaches, it is worthwhile taking time for some last-minute tax planning. Here are some simple tips that may save you money. Preserve your personal allowance: the personal allowance is…
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Use PETs to save on inheritance tax
Inheritance tax and potentially exempt transfers Aside from the annual exemption and the exemptions for particular gifts (such as those out ofincome or in consideration of marriage), it is possible to make gifts free ofinheritance tax – as long as you survive for at least seven years after thedate of the gift. The problem is…
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How to pass on your house free of Inheritance Tax
Pass on your house free of IHT The introduction of the residence nil rate band (RNRB) opens the possibility of leaving the family home to successive generations without triggering an inheritance tax charge. Available for deaths on or after 6 April 2017, the RNRB is an additional nil rate band (0% tax rate) that is…
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Worried about inheritance tax?
Give away £3,000 IHT-free each year There are various exemptions for inheritance tax purposes which enable a person to make tax-free gifts. One of the more useful is the annual exemption. Nature of the exemption The annual exemption is set at £3,000. The exemption allows an individual to make gifts of up to £3,000 each…
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WAGES PAID TO FAMILY MEMBERS: To reduce profits, consider employing members of your family who are not currently employed. They can use their unused personal allowance to cover the wages that you pay them. You can claim their wages against your profits. You must, pay them a competitive market rate for their services and only pay for the hours that they work for you. National Minimum Wage rules also need to be applied.- My Tweets