According to new reports, Prime Minister Rishi Sunak may be planning a major change of inheritance tax regulations, including the potential of outright elimination.<\/p>\n\n\n\n
Families may face a hefty inheritance tax (IHT) charge in the hundreds of pounds as a result of a common mistake, a finance expert says.<\/p>\n\n\n\n
According to Rowan Harding, a financial adviser at Path Financial, consumers in the United Kingdom may be penalised when gifting cash or assets such as a house because they are unaware of rigorous inheritance tax requirements.<\/p>\n\n\n\n
At the moment, Britons have the right to gift as much money or as much of their own property to someone as they like. <\/p>\n\n\n\n
They should, however, be conscious of the tax ramifications. <\/p>\n\n\n\n
Giving up to \u00a33,000 to a loved one or friend in any one year is tax-free, but any more and it will be added to the worth of their estate, making them responsible to the taxman.<\/p>\n\n\n\n
Britons may have thought about giving up their house to their son, daughter, or someone close to them now so they don\u2019t have the tax burden when they pass away.<\/p>\n\n\n\n
Individuals are cautioned to “be aware” that if they die within seven years, they may still be left with a tax bill.<\/p>\n\n\n\n
Furthermore, if they choose to continue living in the property or benefit in some manner from selling it, they may still be required to pay the taxman.<\/p>\n\n\n\n
“People should be aware of the tax implications when they decide to give away sums of money or an asset, such as a property,” Mr Rowan added.<\/p>\n\n\n\n
\u201cThe person receiving the gifts could be liable for tax if you pass away up to seven years later or you continue to benefit from the gift in some way.<\/p>\n\n\n\n
\u201cGetting the right advice on these topics will be crucial so you can avoid a hefty tax bill and make sure more of your money stays with your friends and loved ones.<\/p>\n\n\n\n
\u201cWhether it\u2019s cash you want to give, a house or something else, make sure you\u2019re in-the-know on what you might owe\u00a0HMRC\u00a0so you don\u2019t or your loved ones don\u2019t find themselves out of pocket.\u201d<\/p>\n\n","protected":false},"excerpt":{"rendered":"
According to new reports, Prime Minister Rishi Sunak may be planning a major change of inheritance tax regulations, including the potential of outright elimination. Families may face a hefty inheritance … <\/p>\n