What has changed
With the nil rate band frozen at 325,000 pounds until at least 2030, sensible lifetime giving can reduce a future inheritance tax bill. You can give away 3,000 pounds each year that leaves your estate straight away, plus small gifts, and larger gifts fall out of your estate once you survive seven years.
Who it affects
Anyone whose estate may exceed the nil rate bands, and families planning ahead.
What you should do
Consider using your annual gift allowances and plan larger gifts with the seven year rule in mind. Keep records of gifts made.
Our view
Inheritance tax planning rewards starting early. Small, regular use of the allowances adds up over time.
Common questions
Who does this affect?
Anyone whose estate may exceed the nil rate bands, and families planning ahead.
What should I do about it?
Consider using your annual gift allowances and plan larger gifts with the seven year rule in mind. Keep records of gifts made.
Can TaxTune help me with this?
Yes. Tell us your situation through the quote builder or book a free call, and we will explain exactly what it means for you and handle it if you would like.