As we creep closer to Christmas, many of us will be busy running about buying gifts to place safely under the tree in time for the big day. Some of the more organised among us will be feeling smug having bought and wrapped all of our gifts weeks ago!
Once you have reviewed your finances after the Christmas break, it may be appropriate to continue to make gifts right the way through the year. But why? we hear you cry.
Gifting money, property or other assets can often be a straight forward way of tax planning and making the most of the tax free allowances available to individuals:
- Currently, cash and assets to the value of £3,000 can be gifted per year (plus an additional £3,000 the first time you make a gift to use up the previous tax year’s allowance);
- Gifts can also be made out of any excess income that you have coming in but don’t use;
- Gifts can be made to a trust if passing a gift direct to an individual would be unwise;
- Finally, charitable gifting is still one of the most tax efficient ways to make gifts and support great causes.
Careful planning and advice should be taken before making gifts and our experts in the Wills, Trusts & Estates team across our offices can guide you through the positives and negatives of parting with your hard earned assets.
Make it your New Year resolution to:
- Write or review your Will;
- Plan your estate in a tax efficient matter;
- Make more gifts where possible!
For further advice, call to speak to one of our Wills & Estates team at any of our offices.