Docklands Solicitor

Latest legal news from Docklands Solicitors, Kaslers Solicitors LLP.

Saturday, 19 March 2011


What gifts can I make in my lifetime that will not be liable to Inheritance Tax?

- This is a question we are asked on a daily basis, as the Government (through HMRC) has been very active over the last few years in finding ways of clamping down on any way people can avoid paying tax. In practical terms ‘tax-avoidance’ is legal, whereas ‘tax-evasion’ is not!

General ‘lifetime gifts’ which are free from Inheritance Tax (IHT) liability are:

- Gifts to spouses / Civil Partners

- Wedding gifts of up to £5000 to each of your children/step children/adopted children or their fiancé

- Wedding gifts of up to 2,500 to each grandchild or their fiancé and £1000 wedding gifts to anyone else.

- Maintenance payments by court order

- Other gifts of up to a maximum of £3000 each tax year, and any unused balance from the previous tax


- As many small gifts of up to £250 to other people per tax year

- Gifts to: Charities, Housing Associations, Political parties, Museums, Universities, and The National Trust.

Reduced rates of IHT are payable for gifts made within seven years of death that are above the Nil Rate Band of £325k, as follows:

- 0-3 years - no reduction

- 3-4 years - 20 per cent reduction

- 4-5 years - 40 per cent reduction

- 5-6 years - 60 per cent reduction

- 6-7 years - 80 per cent reduction

- over 7 years - no tax paid

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Call Michael Breeze on 07900 195 195 or call 0845 270 2511 to if you need legal advise about any of these issues

Kaslers Solicitors LLP is a limited liability partnership registered in England under LLP no. OC310653; authorised and regulated by the Solicitors Regulation Authority under reg no 408936; governed by professional rules set out in the Code of Conduct click here to visit and has its registered office / main trading address at Suite 3, 10 Churchill Square, Kings Hill, West Malling, Kent ME19 4YU - tel: +44 (0)845 270 2511; fax: +44 (0)845 270 2513; DX 92863 West Malling.
The LLP Members are Michael D Breeze LL.B (Hons) (SRA reg no 110184) and Simon McCree Scott LL.B (Hons) (SRA reg no 298202).