Inheritance tax rules have changed - here are three ways to give gifts without creating a big bill
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Three ways to still give gifts under new inheritance tax rules
- Giving financial gifts to loved ones early can reduce your Inheritance Tax bill, especially with upcoming changes.
- From April 2027, defined contribution pension wealth will be subject to Inheritance Tax, potentially affecting many more estates.
- Gifts made within seven years of death could be subject to Inheritance Tax, but allowances permit smaller gifts without incurring tax.
- Regular gifts up to £3,000 annually, smaller gifts of £250, and wedding gifts are exempt, along with gifts from surplus income if properly documented.
- Consulting a solicitor is crucial for creating a tax-efficient will and optimising Inheritance Tax strategies, especially with recent changes.