Labour has launched multi-pronged raid on the nation's wealth, starting by slapping inheritance tax on people's unspent pension pots when they die.
Ms Reeves also froze the £325,000 IHT nil-rate band to 2030, dragging more into HMRC's net as house prices, share values and pensions rise. She froze the £175,000 main residence allowance, which applies when passing on the family home to direct descendants such as children and grandchildren, and froze IHT gifting allowances to 2030.
Labour is likely to come back for more, so taxpayers need to use the gifting allowances that remain to remove as much of their wealth out of the Treasury's clutches as possible. Or possibly all of it.
Laura Walkley, partner at wealth managers and law firm TWM Solicitors, expects to see a lot more older people make greater use of gifting following the Budget.
She said: "It can help make sure your money is enjoyed by their heirs rather than the taxman." While today's gifting allowances are small, they can add up over the years. So here's what you can do.
USE THE SEVEN-YEAR RULE
Don't want to hand your wealth to HMRC? Giving it to those you love can reduce IHT bills by shrinking the size of your estate.
You can gift cash and shares, household and personal goods such as furniture, jewellery or antiques, or even a house, land or buildings.
Under the seven-year rule, every gift you make will fall out of your estate and become free of IHT provided you live for seven years after making them.
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Bu hikaye Daily Express dergisinin November 11, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
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