Make sure you use your inheritance tax yearly gifting limit of £3,000 each. In addition, if you did not use last year’s allowance that an extra £3,000 available i.e. total £6,000. This means couple could give away up to £12,000 and all would be outside your estate for inheritance tax immediately.
Make sure you use up unlimited £250 small gifts allowance, you can make this gift to as many people as you wish and it is immediately outside your estate.
You can also make unlimited gifts from income, provided it does affect/reduce your standard of living.
We are urging people to use their allowances early just in case the government changes the tax rules in 2021 given that we all accept that covid-19 debt is going to have to be paid for.
Don’t wait, get some early tax year end planning done now. Contact us.