IHT calc please

castle96

No probs. The 3k annual exemption means that I actually HAVE to HAVe MADE THESE 3K GIFTS EACH year - yes

Albermarle

castle96 said:

No probs. The 3k annual exemption means that I actually HAVE to HAVe MADE THESE 3K GIFTS EACH year - yes

Yes,

If you leave money to charity, this reduces the size of your estate for inheritance tax purposes and if the gift is big enough it will reduce the IHT rate from 40% to 36%.
So a gift to charity can cost you significantly less than the charity receives.

Keep_pedalling

castle96 said:

No probs. The 3k annual exemption means that I actually HAVE to HAVe MADE THESE 3K GIFTS EACH year - yes

No not every year, although perhaps you should start doing so. You get one year of carry over but after that it is use it or lose it. If you did not use it last year you could gift  each of your children £2k now and reduce your estate by £6k immediately. Next year (after April 5) you will have another £3k available.

If you income exceeds you expenditure you should also consider gifts from excess income, but you will need to keep records of both income and expenditure to make it simple for your executors. Have a look at IHT 403 (box 20 - 22) to see what is needed.

https://assets.publishing.service.gov.uk/media/5f60b44cd3bf7f7234487bf0/IHT403-05-20.pdf

[Deleted User]

Under: 

If you make regular payments:

https://www.gov.uk/inheritance-tax/gifts

Bookworm105

same result, but presented in accordance with technical treatment of the gifts (assuming you died now)

Total gifts made 3.5 years before death = 90
no other gifts have been made
Total gifts made in the 7 years before death therefore less than 325k, so taper relief on excess over that figure not applicable

IHT allowance in year of death 325.
Gifts must be deducted from that first, so 325 - 90 = 241 remaining allowance 

rest of estate house 450 + cash 200 = 650 
deduct remaining allowance - 241
deduct residence nil rate band - 175
Net taxable estate = 234k
IHT due 234 x 40% = 93,600