Product category:
Tax and National Insurance
News Release from: Standard Life Bank | Subject: Inheritance tax
Edited by the Insidemoneytalk Editorial
Team on 20 February 2008
Use it or lose it with estate planning!
warns Standard Life (Trade press)
As the end of the tax year approaches, Standard Life is highlighting that people have the opportunity to make use of their annual exemption for inheritance tax (IHT).
This exemption can be carried forward for one year only if unused, after which it is wasted To help financial advisers discuss this with their clients, new literature called End of Year Tax Planning has today been launched to assist financial advisers in this area
This article was originally published on Insidemoneytalk on 16 Jul 2007 at 8.00am (UK)
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PBR - Standard Life comment from Julie Hutchison on IHT, CGT and Domicile
Alistair Darling's First Pre-Budget Report (PBR) as Chancellor contained a long-awaited boost for those concerned about the impact of inheritance tax (IHT) on their family.
Commenting on the annual exemption for IHT, Julie Hutchison, Estate Planning Specialist with Standard Life Assurance Limited said "My feeling is that whilst many people have got into the habit of thinking about ISAs each year, the same is not true of the IHT annual exemption.
It is good estate planning to make use of the exemptions which exist since, with regular gifting over time, even modest amounts can build-up into a substantial nest-egg for your family.
Some people might find that using a trust helps here, to hold the funds for young beneficiaries." The annual exemption for IHT is £3,000.
This is the sum an individual can gift away each tax year with no IHT consequences for the donor.
If the exemption is not used, it can be carried forward for one year only to allow a gift today of up to £6,000, for example.
Couples making joint gifts could potentially give away up to £12,000 in this tax year using this exemption.
A number of other exemptions are available, including:- Gifts to spouse or civil partner.
Maintenance payments.
Wedding gifts.
Gifts to institutions and charities.
Small gifts.
Normal gifts from income.
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