Inheritance Tax is a concern for many people, particularly now that house prices have started to rise again.
There is no sign that the nil rate band (the tax free allowance) will be raised any time soon. It is currently £325,000 per person, but this can be used up in your lifetime if you make substantial gifts to your children and then fail to survive for 7 years.
Generally, you can give away £3000 each year tax free. You can also make small gifts of up to £250 to as many people as you like (but not all to the same person!). You can make a tax free gift of £5000 if one of your children gets married, £2500 to a grandchild or £1000 to anyone else.
If you have a good income, you can make gifts from this tax free but only if they don’t affect your normal lifestyle.
If you would like advice on Inheritance Tax for your own circumstances (as everyone is different) let us help. Contact our specialist Wills and Probate team at one of our offices in Boston, Grantham, Lincoln, Newark, Sleaford and Spalding.