Inheritance Tax on Wedding Gifts
Spring has arrived, Easter is upon us and the wedding season is fast approaching. So, have you thought about giving a cash gift to someone close on the day of their wedding or civil partnership? This could not only be a generous gift, but can also be tax efficient for you.
Under the Inheritance Tax rules you can give tax free:
- Each Parent (including Step-Parents) can gift up to £5,000.
- Grandparents or Great Grandparents can gift up to £2,500.
- Any other person can gift up to £1,000.
Although these are the limits for inheritance tax on wedding gifts, you could boost these amounts with your total annual gift allowance £3,000, which can be split between a number of recipients. If you were to give nothing as a gift in the previous year your total gift allowance increases to £6,000 for one year only. This can be boosted further with gifts out of surplus income.
There is also a small gifts allowance of £250 per annum, but this must be a one-off gift under this value.
We understand that the world of inheritance tax is incredibly complex, so if you have any queries on what we have said above or any other aspect of Inheritance Tax, please contact our tax specialist, Matthew Morris, who can help you with any of these queries and more. Please call on 01384 376964.
Folkes Worton LLP Chartered Accountants
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