If I made an outright gift which is over the nil rate band, would I pay any immediate inheritance tax?
No. This becomes a potential exempt transfer (PET) and the seven year rule applies.
Seek advice on which gift to make first i.e a gift into a trust followed by a PET or vice versa. Remember also a gift into an absolute trust is also a PET and does not suffer any of the aforementioned complications.
Other Inheritance Tax frequently asked questions:
- Does a Will help my Inheritance Tax Planning?
- How much is my estate worth for Inheritance Tax?
- How soon will Inheritance Tax have to be paid?
- What Inheritance Tax planning exemptions do I have?
- What is a potentially exempt transfer?
- Will all my gifts be effective for UK Inheritance Tax?
- If I am making gifts or gifts into trusts which order should I do them in?
- If I have an existing trust, do I need to do anything about it?
- If I made an outright gift of over the nil rate band, would I pay any immediate inheritance tax?
Need further advice? Contact an adviser on:
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Also visit our inheritance tax questions section where we cover a number of the detailed aspects of estate planning you should be considering.
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