Inheritance tax tips !

“"The only two certainties in life are death and taxes."

I thought it would be beneficial to let you know at LJD we can advise you on any inheritance tax issues.

So today I will provide you with a few very interesting tips on reducing what can now be a very high inheritance tax bill. Did you know that if you make a gift out of your regular income then as long as it does not reduce your standing of living then this gift will be exempt from inheritance tax! These include:

•monthly or other regular payments to someone
•regular gifts for Christmas and birthdays, or wedding/civil partnership anniversaries
•regular premiums on a life insurance policy - for you or someone else

You can give away gifts worth up to £3,000 in total in each tax year and these gifts will be exempt from Inheritance Tax when you die. This is the annual limit and you can even carry forward any unused part of the £3,000 exemption to the following year, but if you don't use it in that year, the carried-over exemption expires. If you are a parent you can gift up to £5,000 on the occasion of your Childs wedding free of inheritance tax as well.

Finally and more of a reminder if you make a gift to an individual will be totally exempt from inheritance tax as long as you survive 7 years from making the gift. However one thing to bear in mind is that if you give an asset away at any time, but keep an interest in it - for example you give your house away but continue to live in it rent-free - this may trigger a tax charge.

My advice would be to keep a record/note of any gift you do make and put it in its own folder. That way you will have an excellent record to give to your tax advisor so he/she can make sure you get the maximum reliefs available by performing accurate calculations.

There are plenty more tax tips and advice I could help you or anyone you know who is planning for life after death so please do not hesitate to contact me or pass me on their details. Email me - mitch@ljd.uk.com