My net recorded income is approximately £90,000 and expenditure is approximately £70,000 per tax year. Can I gift the entire £20,000 difference annually without incurring inheritance tax (IHT) on any of it?
DL
Robert Barwise-Carr, tax director at Mazars UK says:
IHT is usually chargeable at a rate of 40 per cent on the value of a person’s estate at death to the extent that the estate exceeds the available nil-rate band, which is currently £325,000.