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Regular gifts from income… an opportunity for IHT savings

Regular gifts from income… an opportunity for IHT savings

Over the last few weeks we have looked at IHT opportunities and issues.  Finally this week we look at the position where regular gifts are made.

We have previously discussed the IHT threshold of £325,000 which is refreshed every 7 years.  But did you know that it is possible to make gifts which are not taken into account when considering this limit.

Gifts made during your lifetime are not included to the extent that they are made from your surplus income, form part of your normal expenditure (made regularly) and leave you with sufficient net income to maintain your usual standard of living.

The amount gifted or expenditure involved does not need to be exactly the same every year, as long as it has a regular pattern.

This exemption is extremely useful as it has no financial limit provided that the above conditions can be met. Common uses include paying your grandchildren’s school fees or paying monthly life assurance premiums on a policy in favour of your children.

For more information, please contact Lesley Sutton on 01484 550037 or email lesley.sutton@revellward.co.uk.

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