Gifting: A handy guide for advisers

As part of their New Year's resolutions, many people may be considering making monetary gifts to their family.  This has the incentive of helping to reduce the value of a client's estate and, therefore, lessen inheritance tax liability. However, clients need to be made aware of the restrictions and limitations around gifting. For example, once a gift has been made, it takes seven years before it falls outside of the client's taxable estate. In addition, every tax year, clients can make a single lump sum gift of up to £3,000. This gift is known as the ‘annual exemption'. If the a...