Tax-efficient Christmas gifts with Wansbroughs

legal & financial GIVE A (TAX-EFFICIENT) CASH GIFT TO LOVED ONES THIS CHRISTMAS!

Christmas is a time for giving, and with increasing financial pressures, Kathryn Smith Cowap, a Partner at WANSBROUGHS, looks at how, if you are able, you can make a tax-efficient cash gift to help a loved one this year.

SMALL GIFTS EXEMPTION

You can make gifts of up to £250 to any number of individuals per year, without any need to survive those gifts by seven years for their value to fall out of your estate.

ANNUAL EXEMPTION

If you wish to give away larger sums, you can give away up to £3,000 in a tax year and the gift’s value will immediately fall out of your estate. You can also carry forward one unused annual exemption from the previous tax year, meaning you can make a gift of £6,000. This exemption cannot however be combined with the small gifts exemption.

Additionally, if there is a Christmasthemed wedding coming up, parents of the bride or groom can each give £5,000 to their child, whilst grandparents can give up to £2,500. Not a parent or a grandparent? You can still gift up to £1,000 to the happy couple.

If you would like more information about this topic, please get in touch with our Private Client team via wealth@wansbroughs.com.

• wansbroughs.com

“you can give away up to £3,000 in a tax year and the gift’s value will immediately fall out of your estate.”

Kathryn Smith Cowap