Most people are aware that we each have a £3,000 annual gifting allowance for inheritance tax planning.
If you have an unused annual gifting allowance for last year too, you can gift up to £6,000 this year which is immediately outside the estate should you die. This means that married couples and civil-partnerships could gift up to £12,000 this year and be outside their estates immediately.
What you may not know is that if you made a gift last tax year of £1,000 then you can gift up to £5,000 this year i.e. £2,000 unused gifting allowance from the last tax year (you can only go back 1 year) plus £3,000 annual gift allowance for the current tax year.
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