Gifts
Lifetime gifts can help reduce liability to IHT. When you are looking at reducing your taxable estate, the first thing you should consider is whether you can afford to give away any of your assets before you die. Gifts can be an easy way to reduce the value of your estate, and can help your beneficiaries receive the full value of their inheritance early, rather than a reduced amount later.
Gifting falls into three main categories:
- Exempt transfers - these include gifts between spouses, charitable donations, regular gifts made out of your income and gifts up to a certain value in consideration of marriage. There is an annual gift allowance of £3000.
- Potentially exempt transfers - Money or assets gifted which are not otherwise exempt will usually be treated as part of your estate for seven years. If you survive the gift by seven years, and have not had access to it or derived any benefit from it, it will be completely exempt from inheritance tax.
- Chargeable lifetime transfers - Gifts made into most lifetime trusts will liable to IHT if over the threshold however at a reduced rate of 20%.
Barclays Wealth can advise you on the full exemptions, and if appropriate, incorporate gifts into your overall inheritance tax strategy.
Find out more about Gifts and IHT
If you are resident and domiciled in the UK, you can find out more about our trust service.
Legal information
The products and services described on this page are provided by the following company, which is part of Barclays Wealth: Barclays Bank PLC in England & Wales. For further information on these companies and Barclays Wealth please read the Important Information. Each Barclays Wealth company reserves the right to make a final determination on whether or not you are eligible for any particular product or service.
