Heads up if you’re thinking of gifting money to family! 🚨 The UK’s inheritance tax rules might soon see a shake-up. The Chancellor is considering changes to a lesser-known rule that lets you give away unlimited amounts without worrying about taxes.
At present, if you make regular gifts from your income and they don’t affect your lifestyle, there’s no cap on how much you can gift. Sounds great, right? But this could be on the chopping block in the upcoming budget.
Key thing to note: these gifts must be part of regular expenditure, coming from your income, not savings. Plus, there’s an exemption limit for gifts given to partners who haven’t lived in the UK much. Generally, anything you leave to a spouse or civil partner escapes the tax man.
Financial expert Sean McCann advises making your gifting intentions clear for your peace of mind. A simple note with your first gift, explaining you intend to give more regularly, can be a lifesaver. Keep it safe with your will.
Remember, inheritance tax only bites on the part of an estate over a certain value, but it’s worth staying ahead of any potential changes. Be savvy with your estate planning, folks! 💼💸
Stay informed and keep those loved ones close. Changes might be coming, but being prepared helps you keep control.