Inheritance Tax is a tax payable on the death of an individual, calculated on the value of the individual's estate at death and on certain lifetime gifts made in the seven years prior to death. Certain exemptions and allowances apply to this tax liability.

The following points, whilst not exhaustive, may assist you in your tax planning. Should you wish further information or advice then please contact us.

• Have you given away your annual exemption of £3,000 (which can be carried forward for one tax year)?
  
  
• If the marriage of a child or grandchild is anticipated in the coming year, then steps can be taken to take advantage of the marriage gift exemption.
  
  
• Exempt gifts of up to £250 per individual "donee" can be made in each tax year; the only limit being the number of suitable "donees".
  
  
• Do you have any unutilised income, which would enable you to qualify for a gift exemption under the "normal expenditure" out of income rules?
  
  
• Larger gifts, which qualify as "potentially exempt transfers" that are exempt after survival of 7 years, should be utilised, particularly as it is rumoured that the period of survival may be extended to 10 or 15 years.

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