Posted on 21.4.16
In reaction to the huge data leak and revelation of the Panama Papers, Gorvins’ Wills and Inheritance Solicitor, Tasoula Addison, spoke to The Independent newspaper about how ‘normal’ people can manage their tax better, in a fashion not dissimilar to the rich and famous.
“Although many people regard Inheritance Tax (IHT) as a tax for the rich, with the rise in house prices more and more ‘ordinary’ people are being pulled into the IHT net.”
Tasoula continued, “The difference is perhaps that many ‘ordinary’ people are not aware of the tax planning tools you can use to reduce your potential inheritance tax liability. These are commonly used and based on exemptions and reliefs set out in legislation, so are perfectly legal.
“To stop your estate from building up everyone can make yearly gifts of up to £3,000, which can be rolled over the following year to a maximum of £6,000. You can also give up to £250 to as many people as you like, as well as wedding gifts of £5,000 to a child, £2,500 to a grandchild and £1,000 to anyone else,” Tasoula told The Independent.
“Meanwhile, Potentially Exempt Transfers, the basis of the £200,000 which David Cameron reportedly received from his mother in 2011, allows larger gifts to be made in a year, with no inheritance tax charge as long as the donor survives for seven years after the gift.”