HM Revenue and Customs (HMRC) has indicated that it will be paying more attention to lifetime gift transfers and will be asking for more information.
Our view
Inheritance tax is not a death tax as many people think, it is a tax on transfers of value i.e. gifts of money or money value that you make during life or death.
Only some gifts are exempt, these gifts made are cumulative and use up your inheritance tax threshold over a 7 year period. Others gifts, once they exceed the threshold are immediately chargeable to tax, in life, or in death.
We suggest you keep records of any gifts made and store the information with your Will as executors will need to pay particular attention to checks about lifetime gifts.
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