Winckworth Sherwood

UK 200 2013 position: 94

Lifetime gifts of capital — the taxation consequences

Assuming that the older generation can afford it, the ‘children’ (or indeed grandchildren) will always welcome some financial help, for example for investing in a house. And if you are giving your hard-earned cash, you might as well do so tax-efficiently. This usually means planning to mitigating the ultimate Inheritance Tax liability on death.

This briefing provides a summary of the principal UK tax considerations that you should bear in mind when making gifts — although the specific application will depend on your particular circumstances and plans.

Quite apart from tax, there are two guiding principles: you should never give away more than you can reasonably afford, bearing in mind that, as we all live longer, care costs continue to rise inexorably; and never discount the possibility that a gift might have an adverse effect on the recipient — it will, of course, affect their financial status…

Click on the link below to read the rest of the Winckworth Sherwood briefing.


Minerva House
5 Montague Close

Turnover (£m): 25.70
Total Lawyers: 125