Gifts from surplus income

Posted on 28th May 2025

If you have some spare cash each month you can give regular gifts to loved ones to help reduce you IHT liability.

Very few people take advantage of inheritance tax rules that allow you to make gifts from your surplus income. That’s according to recent results of a Freedom of Information (FOI) request.

This information shows that only 1,500 estates, about 2%, made gifts using this rule in the last three years. However, following government pension reforms, this could change.

Pension pots and Inheritance Tax – changes in 2027

Posted on 13th February 2025

At 40%, Inheritance Tax or IHT can have a significant impact for the beneficiaries of your estate when you die. By 2032/33 one in eight estates may pay IHT when a surviving spouse or civil partner dies.

Your pension piggy bank might be broken due to inheritance tax changes.

The impact of the Autumn Budget’s Inheritance Tax changes for families

Posted on 11th November 2024

Inheritance Tax (IHT) decisions in the Autumn Budget will probably change financial arrangements for many families.

Currently IHT affects about one in 20 or 4% of estates each year but by 2032 this is expected to increase to 7%. Parents might start passing on assets to their children much earlier to minimise IHT liabilities.

Family homes form a large part of estates when people die, adding to Inheritance Tax liabilities.

Will the budget abolish the residence nil rate band for inheritance tax?

Posted on 11th October 2024

Abolishing the £175,000 residence nil-rate band (RNRB) is a possibility in the budget on 30th October. The government might also consider other amendments to the inheritance tax (IHT) system.

House prices are going up but inheritance tax thresholds are unchanged so more families must pay.

New guidance on help to pay inheritance tax

Posted on 28th May 2024

Even if your family home is a cute countryside cottage inheritance tax might still be use when you die.

HM Revenues and Customs (HMRC) has published guidance on applying for a grant on credit for Inheritance Tax (IHT) payments.

There have also been updates to the tax rules and processes affecting trusts and estates.

No changes in the Spring Budget for IHT

Posted on 25th March 2024

The Spring Budget announced to the uK parliament didn't include amendments to IHT

There were a lot of rumours ahead of the Spring Budget on 6th March about changes to inheritance tax (IHT).

Action was expected to make sure policy was clear ahead of the General Election later this year.

However, nothing was mentioned, leaving the government’s position unspecified despite other tax changes such as National Insurance Contributions (NICs). There were also changes to Child Benefit and VAT registration.

Inheritance tax affects more families as property values rise

Posted on 20th December 2023

the price of a family home is increasing, adding to inheritance tax paid by many families.

Since the 2009/10 tax year government receipts from Inheritance Tax (IHT) have increased, reaching over £7billion in 2022/23. By 2027/28 the figure could reach £8.4billion.

These dramatic increases are largely due to rising property values and the continued freeze on inheritance tax thresholds. This means more estates than ever exceed £325,000 when 40% IHT comes in to effect.

How to reduce Inheritance Tax: Regular financial support for your children

Posted on 13th November 2023

You can give gifts to family members out of your excess income.

You can make regular payments to your children out of your income which can help reduce Inheritance Tax (IHT).

Understanding government proposals for tax on pensions

Posted on 25th September 2023

There are plans to revise the pension and inheritance tax system. HM Revenue & Customs (HMRC) is also proposing changes to exemptions for people who inherit pensions. You and your benficiaries could lose more funds from your back pocket.

New pension tax and inheritance rules could take more funds from your back pocket

Will the government cut inheritance tax?

Posted on 27th April 2023

It has been reported the government is considering a cut in Inheritance Tax (IHT) before the general election.

Figures from HM Revenue & Customs (HMRC) show that government income from IHT was approaching £1billion higher in February than in the same period last year.

Money and property are subject to inheritance tax.

Posts tagged “inheritance tax”

Gifts from surplus income

Pension pots and Inheritance Tax – changes in 2027

The impact of the Autumn Budget’s Inheritance Tax changes for families

Will the budget abolish the residence nil rate band for inheritance tax?

New guidance on help to pay inheritance tax

No changes in the Spring Budget for IHT

Inheritance tax affects more families as property values rise

How to reduce Inheritance Tax: Regular financial support for your children

Understanding government proposals for tax on pensions

Will the government cut inheritance tax?

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