Understanding Gifts

Morning, regarding the inheritance tax annual exemption of £3,000 there is no specific account to be used for this but your personal representatives dealing with your estate (in the event of your death) would need to be able to prove that the gift had been made so simply keeping a copy of the bank transaction for each £3,000 used each year. Inheritance tax calculations on death are effectively done in the same way as a self-assessment tax return so it’s up to your personal representatives to deal with these issues, and show the relevant paperwork to the revenue when these things are required.

This is not a specific bank account it can be any account, its an annual exemption that you get, you can gift more money than this and once you have lived a further 7 years it will be tax free for inheritance tax purposes, if you still are unclear of any of this please call me or let me know a good time for me to call you, thanks, Steve
I am an Independent Financial Adviser.

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