A prominent Wealth Management has recently issued a notice about authorities from the HM Revenue and Customs department that will soon be implementing an array of severe restrictions on the present Inheritance tax gifting loopholes.
They also suggest that those who are planning to gift funds to their loved ones to be a "gift" to make certain that they clearly state the intention to avoid a large inheritance tax charge. Here you will get to know about how to avoid inheritance tax.
Image Source: Google
In the present, there are no guidelines or procedures for reporting outright gifts at the time they are made. This means that the responsibility has always been on an estate's executors or administrators to notify their HMRC informed of all gifts made during the lifetime of the deceased, and particularly gifts made within the past seven years.
However, the changes to these rules mean that the HMRC does not have to look at estates above that of the Null Rate Band at the time of death (and in cases where there could be a tax liability for IHT).
In the future, the HMRC will examine estates in which it appears there is no tax issue to maximize the tax take.
If the present is in the form of cash, cheque, or even Chattel (a sentimental piece of personal property, such as jewelry) A letter must be attached to the jewelry that explains the intention of the gifter to gift the item.
If the value is clear then it must be stated in the gift card along with the date and signature from the person giving the gift.