Sarah Coles, head of personal finance at Hargreaves Lansdown, reveals how you can reduce your inheritance tax (IHT) burden before the new tax year:
Review your retirement assets. Some families have delayed pension withdrawals to pass on wealth IHT-free. Under the new plan drawing down or buying an annuity might be wiser. Use gifting allowances. Everyone can gift up to £3,000 IHT-free each year and mop up last year’s allowance if unused. Couples can double this, poten-tially gifting £12,000 in total if they act before April 5. Gifting money to children or grandchildren? Pay it into a junior ISA, where it grows tax-free. The annual limit is £9,000. Consider gifts from surplus income. Regular gifts from excess income are instantly IHT-free with no l...
Review your retirement assets. Some families have delayed pension withdrawals to pass on wealth IHT-free. Under the new plan drawing down or buying an annuity might be wiser. Use gifting allowances. Everyone can gift up to £3,000 IHT-free each year and mop up last year’s allowance if unused. Couples can double this, poten-tially gifting £12,000 in total if they act before April 5. Gifting money to children or grandchildren? Pay it into a junior ISA, where it grows tax-free. The annual limit is £9,000. Consider gifts from surplus income. Regular gifts from excess income are instantly IHT-free with no l...
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Daily Express (Digital) - 1 Issue, March 21, 2025