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Making Gifts
When we make a relatively small gift to our children or grandchildren we do not imagine for a minute that it will affect our Inheritance Tax or our Capital Gains Tax position.
There is considerable misunderstanding about how much can be given away without it affecting your tax position. Making gifts during your lifetime can be a very effective way of reducing the tax bill when you die. It is wise to take professional advice when considering making a gift. It may be that there is a more tax efficient way of making a gift. It might be better to treat the gift as coming out of income rather than capital.
The other consideration when making gifts is whether you can actually afford to give away your cash or assets. After all, you might need the money later on. Our investment team can create computer generated models to illustrate what the effects of making a particular gift now might have on your future finances. We do not know what will happen in the future. The illustration can take into account things such as a need for care home fees, house price deflation and many other variables so that you can be confident when making a gift that you will not be left vulnerable in future.
Making a lifetime gift can result in considerable tax savings.
To speak to someone who can help with making gifts and other tax planning opportunities call, email or request a call back from one of our specialist lawyers.