.png)
.png)
Act now!
Key points
- The normal expenditure out of income exemption can be a useful way to mitigate inheritance tax for those with surplus income.
- It is important for those wishing to claim the exemption to maintain records of regular gifts made from surplus income in a form similar to that contained in the inheritance tax account.
- In light of the Office for Tax Simplification’s review of administrative and technical aspects of inheritance tax the days of claiming the normal expenditure out of income exemption may be numbered.
Normally when an individual known as the donor makes an outright gift to another individual this is known as a potentially exempt transfer (PET) for inheritance tax purposes. The gift is only ‘potentially’ exempt because there may be inheritance tax to pay on the value of the gift if the donor does not survive it by seven years – and...
Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.
