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Three ways to still give gifts under new inheritance tax rules

Compounding explained: Discover how your investment can keep on giving
  • 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.
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