Tax and gifts
Article Abstract:
Careful planning can ensure that any tax due on a gift is reduced to a minimum or even avoided altogether. A gift may be liable for capital gains tax, income tax or inheritance tax. When giving to charity, it is worth using Gift Aid, payroll giving or a deed of covenant. In the case of giving between individuals, certain gifts are always free of inheritance tax. These include gifts to people getting married, up to certain limits, and gifts which are part of normal expenditure out of income.
Publication Name: Which?
Subject: Consumer news and advice
ISSN: 0043-4841
Year: 1996
User Contributions:
Comment about this article or add new information about this topic:
Tax and gifts
Article Abstract:
Gifts made between individuals may attract capital gains tax or inheritance tax, but in certain circumstances these gifts are tax-free. These include gifts which are between husband and wife both living in the UK and gifts of land in the UK to registered housing associations. For gifts to charity, tax-efficiency can be improved by using a deed of covenant, payroll giving or the Gift Aid scheme. In order to reduce inheritance tax, it is advisable to begin making gifts early.
Publication Name: Which?
Subject: Consumer news and advice
ISSN: 0043-4841
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
Tax and gifts
Article Abstract:
People may be liable to pay tax when giving a gift. Gifts to charity qualify the donor for income tax relief if they take the form of payroll gifts, gift aid or deeds of covenant. Gifts to companies and some discretionary trusts are liable to inheritance tax. Tax-free gifts include those between husband and wife and small gifts of up to 250 pounds sterling a year.
Publication Name: Which?
Subject: Consumer news and advice
ISSN: 0043-4841
Year: 1995
User Contributions:
Comment about this article or add new information about this topic: