When a gift isn't entirely free…
Much has been written about Inheritance Tax in recent weeks, particularly the new immediate £600,000 tax-free threshold for married couples and civil partners as announced by Chancellor Alistair Darling, that's set to rise to £700,000 in 2008.
A less widely discussed strategy by HM Revenue & Customs (HMRC) has contributed significantly to the Treasury now receiving nearly double the amount of Inheritance Tax than it did a decade ago.
Gifts made seven years or more before a person's death are not subject to Inheritance Tax, but those that fall into this time-window can be taxed at up to 40%. Now HMRC is clamping down on families it believes to have received undeclared financial gifts from members who died within this period.
If you are uncertain of your position, or wish to ensure you have nothing to hide from such an inspection, please call our tax-planning team who'll be very happy to help.
Call Barbara Calcutt on 0117 9290451 or email bcalcutt@metcalfes.co.uk
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