Inheritance tax: how much you can gift

23 April 2019
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Everyone is allowed to give away money every year with that amount immediately leaving their estate and no longer being liable for inheritance tax.

A number of different gifts are allowed:

• £3,000 – This is your annual exemption. You can give anything up to this amount away every tax year.

• Up to £250 – You can also give away as many gifts of up to £250, as long as it doesn’t go to someone who has already benefited from a gift out of your annual exemption.

• £1,000 – When someone gets married or enters a civil partnership, you can give them up to £1,000 (£2,500 if they are your grandchild or great-grandchild, and £5,000 for a child).

• Gifts out of income – You can give away regular gifts out of your income as long as it doesn’t affect your standard of living.

• Living costs – You can make payments to help with an elderly relative’s living costs or a child under 18.

Other tax allowances you need to know for 2019/20

Tax allowance2018/19 rate2019/20 rate
Personal allowance£11,850£12,500
Higher income tax band£46,351 to £150,000£50,001 to £150,000
Isa£20,000£20,000
Junior Isa £4,260£4,368
Capital gains £11,700£12,000
Pension annual allowance£40,000£40,000
Pension lifetime allowance £1,030,000£1,055,000
Inheritance tax (IHT) nil-rate band£325,000£325,000
IHT residence nil-rate band£125,000£150,000

 

Moneywise.co.uk, 11 March 2019

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