“Uptick” in regular instalments vs lump sums …

Juno_Moneta

Not a surprise that more people are now trying to utilise the ‘gifts from surplus income’ method in a natural response to new IHT rules.

I guess there is the possibility of further rule changes that shut this down…

https://inews.co.uk/inews-lifestyle/money/pensions-and-retirement/pensioners-cash-income-inheritance-tax-3936157

westv

Juno_Moneta said:

Not a surprise that more people are now trying to utilise the ‘gifts from surplus income’ method in a natural response to new IHT rules.

I guess there is the possibility of further rule changes that shut this down…

https://inews.co.uk/inews-lifestyle/money/pensions-and-retirement/pensioners-cash-income-inheritance-tax-3936157

I just started to read it and a paywall came up.

Cobbler_tone

Indeed. Too many paid for services now or ads destroying news articles.

FIREDreamer

westv said:

Juno_Moneta said:

Not a surprise that more people are now trying to utilise the ‘gifts from surplus income’ method in a natural response to new IHT rules.

I guess there is the possibility of further rule changes that shut this down…

https://inews.co.uk/inews-lifestyle/money/pensions-and-retirement/pensioners-cash-income-inheritance-tax-3936157

I just started to read it and a paywall came up.

https://archive.ph/ajqH8

You’re welcome. 😃

Cobbler_tone

FIREDreamer said:

westv said:

Juno_Moneta said:

Not a surprise that more people are now trying to utilise the ‘gifts from surplus income’ method in a natural response to new IHT rules.

I guess there is the possibility of further rule changes that shut this down…

https://inews.co.uk/inews-lifestyle/money/pensions-and-retirement/pensioners-cash-income-inheritance-tax-3936157

I just started to read it and a paywall came up.

https://archive.ph/ajqH8

You’re welcome. 😃

Blocked by my virus checker. 

westv

Cobbler_tone said:

FIREDreamer said:

westv said:

Juno_Moneta said:

Not a surprise that more people are now trying to utilise the ‘gifts from surplus income’ method in a natural response to new IHT rules.

I guess there is the possibility of further rule changes that shut this down…

https://inews.co.uk/inews-lifestyle/money/pensions-and-retirement/pensioners-cash-income-inheritance-tax-3936157

I just started to read it and a paywall came up.

https://archive.ph/ajqH8

You’re welcome. 😃

Blocked by my virus checker. 

Got this on my work laptop.

Access to this content has been restricted.

Country block outbound request: not allowed to access sites in this country Russia

Albermarle

westv said:

Cobbler_tone said:

FIREDreamer said:

westv said:

Juno_Moneta said:

Not a surprise that more people are now trying to utilise the ‘gifts from surplus income’ method in a natural response to new IHT rules.

I guess there is the possibility of further rule changes that shut this down…

https://inews.co.uk/inews-lifestyle/money/pensions-and-retirement/pensioners-cash-income-inheritance-tax-3936157

I just started to read it and a paywall came up.

https://archive.ph/ajqH8

You’re welcome. 😃

Blocked by my virus checker. 

Got this on my work laptop.

Access to this content has been restricted.

Country block outbound request: not allowed to access sites in this country Russia

The gist of it is that there is an increase in people taking their tax free cash in instalments, and then gifting it under the excess income rules. 
The finance experts interviewed say it is a grey area, and there is no clarification from HMRC that when it comes to the crunch, that they will accept this. In which case more IHT than expected may need to be paid at the time.

There is no indication in the article that 'normal' gifting from taxable income is a problem, unless proper records that stand up to HMRC scrutiny are not kept and can not be justified.

For perspective the number of people gifting from income is a relatively small number, and those doing it from tax free cash smaller still. 

LHW99

westv said:

Cobbler_tone said:

FIREDreamer said:

westv said:

Juno_Moneta said:

Not a surprise that more people are now trying to utilise the ‘gifts from surplus income’ method in a natural response to new IHT rules.

I guess there is the possibility of further rule changes that shut this down…

https://inews.co.uk/inews-lifestyle/money/pensions-and-retirement/pensioners-cash-income-inheritance-tax-3936157

I just started to read it and a paywall came up.

https://archive.ph/ajqH8

You’re welcome. 😃

Blocked by my virus checker. 

Got this on my work laptop.

Access to this content has been restricted.

Country block outbound request: not allowed to access sites in this country Russia

I have a script blocker and anti -ads, -tracking and -pop-ups enabled by default. That did allow access to the archive.ph content. It can be tailored individually to sites I view regularly.

poseidon1

Juno_Moneta said:

Not a surprise that more people are now trying to utilise the ‘gifts from surplus income’ method in a natural response to new IHT rules.

I guess there is the possibility of further rule changes that shut this down…

https://inews.co.uk/inews-lifestyle/money/pensions-and-retirement/pensioners-cash-income-inheritance-tax-3936157

Can't read the article ( paywall), but assume they are talking about UFPLSs  and gifting that regularly.

 Apparently HMRC do accept the 25 % element of UFPLS as income for the purposes of the exemption. 

Needless to say however, taking the entire 25% TFC upfront and purporting to drip feed that capital as income does not work.

Albermarle

poseidon1 said:

Juno_Moneta said:

Not a surprise that more people are now trying to utilise the ‘gifts from surplus income’ method in a natural response to new IHT rules.

I guess there is the possibility of further rule changes that shut this down…

https://inews.co.uk/inews-lifestyle/money/pensions-and-retirement/pensioners-cash-income-inheritance-tax-3936157

Can't read the article ( paywall), but assume they are talking about UFPLSs  and gifting that regularly.

 Apparently HMRC do accept the 25 % element of UFPLS as income for the purposes of the exemption. 

Needless to say however, taking the entire 25% TFC upfront and purporting to drip feed that capital as income does not work.

They appeared to be talking about just taking the TFC in small instalments, and claiming that as part of excess income.

poseidon1

Albermarle said:

poseidon1 said:

Juno_Moneta said:

Not a surprise that more people are now trying to utilise the ‘gifts from surplus income’ method in a natural response to new IHT rules.

I guess there is the possibility of further rule changes that shut this down…

https://inews.co.uk/inews-lifestyle/money/pensions-and-retirement/pensioners-cash-income-inheritance-tax-3936157

Can't read the article ( paywall), but assume they are talking about UFPLSs  and gifting that regularly.

 Apparently HMRC do accept the 25 % element of UFPLS as income for the purposes of the exemption. 

Needless to say however, taking the entire 25% TFC upfront and purporting to drip feed that capital as income does not work.

They appeared to be talking about just taking the TFC in small instalments, and claiming that as part of excess income.

If so then bad advice, but not unusual given the dodgy the level of mass media financial journalism and some of the so called experts who brief them.