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Gifts That Are Immediately Exempt from IHT
In the UK, giving away money or assets during your lifetime can be a smart way to reduce the value of your estate and potentially lower your Inheritance Tax (IHT) liability. But not all gifts are treated the same. Some gifts are considered Potentially Exempt Transfers (PETs) and only become exempt if you survive seven years. Others,…
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When Should You Start Recording Your Gifts?
Making financial gifts during your lifetime can be a smart way to reduce the value of your estate for Inheritance Tax (IHT) purposes. But if you don’t keep clear records, your generous gestures could become a tax headache later — especially for your loved ones. In this article, we’ll explain why it’s essential to start recording…
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How Executors Handle Gifts Made Before Death
When someone dies, the executor of their estate takes on a long list of responsibilities — including one task that’s easy to overlook but critically important: accounting for any gifts the person made during their lifetime. In the UK, many gifts made in the 7 years before death can affect the estate’s Inheritance Tax (IHT) bill. If you’re…
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What Happens If I Die Within 7 Years of Making a Gift?
If you’re planning to pass on money or assets during your lifetime, it’s important to understand how Inheritance Tax (IHT) works — particularly the rules around Potentially Exempt Transfers (PETs) and the 7-year rule. In this article, we explain exactly what happens if you die within 7 years of making a gift, how tax might be calculated, and…
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How to Use the Annual Exemption for Gifting
The Annual Exemption is one of the most useful — and underused — tools in UK estate planning. It allows you to give away a set amount of money or assets each tax year free from Inheritance Tax (IHT), no matter when you die. In this article, we’ll explain what the annual exemption is, how to use it…
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What Is a Potentially Exempt Transfer (PET)?
When planning for inheritance, it’s important to understand how your financial gifts may impact your estate’s liability for Inheritance Tax (IHT). One of the most common types of gifts in the UK tax system is a Potentially Exempt Transfer (PET). In this article, we’ll explain what a PET is, how it works, the rules you need…