Legal News | 25.11.21
… too soon for a Christmas newsletter?
A very important question many are debating about now is “when is it acceptable to put up my Christmas tree?”
Some say December and not a moment sooner. Some have had Christmas decorations up all year (we do need some positivity in a pandemic, you know). Tradition says the beginning of Advent, which is Sunday 28 November this year.
Whatever the consensus in your household, there is one thing that it is not too soon to do. Think about gifting as part of your inheritance tax planning, of course!
Whilst there is no specific Christmas gifting exemption (take note for the next Budget, Rishi?), you can make the following gifts, without inheritance tax consequences, with Christmas in mind:
• Give away up to £3,000 per tax year (and if you did not make use of this £3,000 allowance in the previous tax year, you can carry that forward to make an initial gift of £6,000); and
• Make gifts of £250 to as many individuals as you wish (provided this does not overlap with the £3,000 rule above).
Additionally, if there is a Christmas themed wedding coming up, parents of the bride or groom can each give £5,000 to their child, whilst grandparents can give up to £2,500. Not a parent or a grandparent? You can still gift up to £1,000 to the happy couple.
If the festive season is making you feel generous (or perhaps you would simply like to do some inheritance tax planning whilst leaving the Christmas tree to 24 December) please do get in touch with us at wealth@wansbroughs.com or telephone us on 01380 733384.
