Search Results for "gifts"

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IHT gifts – 7 year limit

IHT gifts – 7 year limit

Gifts made during one’s life are known as Potentially Exempt Transfers (PETs) for Inheritance Tax. Tax-free after 7 years, but tapered relief applies within 3 to 7 years. Keep a record for effective estate planning.

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Hold-over gifts relief

Hold-over gifts relief

Gifts Hold-Over Relief defers Capital Gains Tax on gifts or sales below market value. Spouses and civil partners make joint claims. Business asset givers need a 5% stake, while share givers require an unlisted, trading company as their personal company.

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Higher rate tax relief on gifts to charities

Higher rate tax relief on gifts to charities

The Gift Aid scheme in the UK, introduced in 1990, lets charities reclaim basic-rate Income Tax on donations. Higher-rate taxpayers can claim extra relief, and donations can be carried back to a previous tax year for maximum tax benefits, with some limitations.

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IHT gifts with reservation of title

IHT gifts with reservation of title

The majority of gifts made during a person’s life are not subject to tax at the time of the gift. These lifetime transfers are known as ‘potentially exempt transfers’ or ‘PETs’. These gifts or transfers achieve their potential of becoming exempt from

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Inheritance Tax-free gifts reminder

Inheritance Tax-free gifts reminder

We wanted to remind our readers of the Inheritance Tax (IHT) implications of making cash gifts during the current 2021-22 tax year that will end on 5 April 2022.

You can give away up to £3,000 worth of gifts each tax year. This is known as your

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Gifts to spouse or charity

Gifts to spouse or charity

In most cases, there is no Capital Gains Tax (CGT) to be paid on the transfer of assets to a spouse or civil partner. There is, however, still a disposal that has taken place for CGT purposes effectively at no gain or loss on the date of the

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Business gifts

Business gifts

The rules for deciding whether a gift given in the course of business is deductible are complex. The rules for business gifts generally follow those for business entertaining expenditure. This means that HMRC take the view that in general business

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VAT and business gifts

VAT and business gifts

In general, VAT does not have to be accounted for on business gifts to the same person as long as the total cost of the gifts does not exceed £50 (before VAT) in any 12-month period. The definition of business gifts includes items from brochures,

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Inheritance and tax

Inheritance and tax

As a general rule, an individual who inherits property, money or shares is not liable to pay tax on the inheritance. This is because any Inheritance Tax (IHT) due should be paid out of the deceased’s estate before any cash or assets are distributed

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Interest on children’s savings

Interest on children’s savings

All children in the UK have their own personal allowance, currently £12,570. There are special rules if a parent gifts significant amounts of money to their children which results in them receiving bank interest of more than £100 (before tax).

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