For many families, giving gifts can be a rewarding way of sharing wealth, or very often is a way of families helping out loved ones who could benefit from a finical boost. But did you know that it could help you reduce your own tax liabilities?
Under current rules there are a number of ways in which you can pass on your assets under your individual tax free allowances and which can be exempt from inheritance tax. For example you are entitled to make gifts to your spouse or partner up £3,000 a year under your tax free allowances and £250 to anyone else, or if you are the parent of an adult child who us getting married, you can gift the £5,000 before being taxed.
With the right advice, tax planning and reducing your liabilities can be easier than you think. Professional advice is crucial for ensuring that your tax arrangements are legal and making the most from your wealth. By combining you tax and financial planning advice you could benefit from a more joined up approach allowing your advisers to make your assets work harder for you.