Diabolical pension inheritance tax on death 2027.

BikingBud

https://forums.moneysavingexpert.com/discussion/comment/81984267#Comment_81984267

Fawlty Towers?

Bostonerimus1

https://forums.moneysavingexpert.com/discussion/comment/81987198#Comment_81987198

At least it wouldn't be boring.

QQQQQQQQ_Y

https://forums.moneysavingexpert.com/discussion/comment/81984267#Comment_81984267

Am I right in thinking that gifts within your own allowance do not count as income for the recipient?

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81987543#Comment_81987543

A gift is just that, so no tax implications for the recipient.

Bostonerimus1

https://forums.moneysavingexpert.com/discussion/comment/81987543#Comment_81987543

In the UK you can give gifts up to 3k each year without any complications. Amounts over that will trigger the 7 year IHT tax taper timer, but that can be avoided if you make regular gifts from excess income you have. There are also some specific extra allowances for things like children's marriages. Gifts are not counted as income.

I'm in the US and the allowances are a far more generous as you can give up to $19k/year to an unlimited number of people and even if you go over that amount it just gets taken off your lifetime allowance of $15M.

horsewithnoname

some problems are so much better to have than others 😉

Marcon

https://forums.moneysavingexpert.com/discussion/comment/81987593#Comment_81987593

There can be:

Any Inheritance Tax due on gifts is usually paid by the estate, unless you give away more than £325,000 in gifts in the 7 years before your death. Once you’ve given away more than £325,000, anyone who gets a gift from you in those 7 years will have to pay Inheritance Tax on their gift.

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

bjorn_toby_wilde

https://forums.moneysavingexpert.com/discussion/comment/81984766#Comment_81984766

It looks stunning. I went over to the island on the sea tractor, wandered around on the cliff tops and visited the island’s only pub whilst staying in the South Hams a couple of years ago. Didn’t see any retired colonels, etc though.

I’m pretty sure that Mortimer and Whitehouse did a fishing episode there and stayed in the cottage where Christie did a lot of her writing.

Bostonerimus1

https://forums.moneysavingexpert.com/discussion/comment/81989524#Comment_81989524

Does this apply to regular gifts from excess income that avoid the 7 year rule?

Also the 325k limit would not apply if the gifts come from overseas…so don't worry if you get a large inheritance from an Australian grandparent.

Marcon

https://forums.moneysavingexpert.com/discussion/comment/81989597#Comment_81989597

It doesn't apply to gifts from excess income because there's no IHT due on those.