{"id":6010,"date":"2024-12-20T13:00:00","date_gmt":"2024-12-20T13:00:00","guid":{"rendered":"https:\/\/ctt-group.co.uk\/private-client\/?p=6010"},"modified":"2024-12-20T10:36:09","modified_gmt":"2024-12-20T10:36:09","slug":"gifting-and-inheritance","status":"publish","type":"post","link":"https:\/\/ctt-group.co.uk\/private-client\/gifting-and-inheritance\/","title":{"rendered":"Gifting and Inheritance"},"content":{"rendered":"
\n\t\t
\n\t\t\t

\u2018Tis the season, and to get in the holiday gifting spirit of things, I thought it would be a good idea to take a look at gifting and inheritance planning for before the tax year ends. Focusing on Inheritance Tax (IHT) threshold changes and the rules around annual gift allowances.<\/p>\n

I\u2019m Lucy Miles, the Director of Private Client for CTT. With 15 years of experience in the Tax and Trust space, I know a thing or two about IHT and gift allowances; I also love Christmas and organise the CTT Christmas party every year!<\/p>\n

Around this time of year, people are far more likely to give to charitable causes<\/a>, and in this spirit we\u2019re going to delve into the advantages of gifting as well as efficiency around tax planning for this time of year, preparing for the next tax year.<\/p>\n

How to maximise tax efficiency for the tax year<\/strong><\/h4>\n

As a higher rate taxpayer, you pay 40% tax on anything earned over \u00a350, 271. High net worth individuals will pay even more if they earn over \u00a3125,140.<\/p>\n

Falling into either of these brackets means that having a forward-thinking tax planning strategy is going to be advantageous. Identifying the areas where you could be paying less tax allows you to save more and prepare for any unforeseen circumstances with ease.<\/p>\n

There are many ways to help you mitigate a large tax burdens, such as maximising pension contributions or investing in an ISA. In this article we are going to explore gifting as a way to increase tax efficiency.<\/p>\n

This is only one strategy out of many strategies you can take to help alleviate a tax burden. At CTT Private Client we specialise at helping high net worth individuals plan for inheritance tax and business succession to name a few and are experts at advising you on the best ways to manage your money, not just for now, but for the generations to come.<\/p>\n

And what better way to ensure your wealth for the future than by giving a gift!<\/p>\n

Gifting and inheritance in a nutshell<\/strong><\/h4>\n
Lifetime Giving Strategies \u2013 <\/strong><\/h5>\n

Passing down wealth to close friends and family upon death is a great way to protect your money by making sure it ends up in the hands of those you trust, but that money will likely be hit with a hefty IHT bill.<\/p>\n

Giving away wealth during your lifetime is actually a very tax efficient way of reducing IHT on your entire estate. IHT currently sits at a 40% tax above the threshold of \u00a3325,000, with lifetime giving you can impact this significantly.<\/p>\n

Essentially by gifting your estate while you are still alive you can bring down its value below this threshold, avoiding the higher rate in IHT altogether. This guarantees that more of your wealth gets passed down to your beneficiaries rather than being eaten up by IHT.<\/p>\n

Some useful giving strategies include:<\/strong><\/h5>\n