HMRC has published new guidance setting out which gifts count towards the value of an estate, how they are valued and how much inheritance tax may be due.
The new guidance walks through the various steps that need to be taken when valuing an estate and working out how much IHT may be due when gifts have been made. It sets out in particular:
how to identify all relevant gifts;
what to do if the value of those gifts exceeds the £325,000 threshold; and
how to calculate the tax due and pay HMRC.
The guidance also considers gifts which are exempt from IHT (e.g. those passed to a spouse or civil partner, or those within the usual IHT exemptions), and valuation of gifts which are not exempt – touching on gifts with reservation of benefit, and the income tax pre-owned assets charge, providing a number of worked examples.
HMRC has published new guidance setting out which gifts count towards the value of an estate, how they are valued and how much inheritance tax may be due.
The new guidance walks through the various steps that need to be taken when valuing an estate and working out how much IHT may be due when gifts have been made. It sets out in particular:
how to identify all relevant gifts;
what to do if the value of those gifts exceeds the £325,000 threshold; and
how to calculate the tax due and pay HMRC.
The guidance also considers gifts which are exempt from IHT (e.g. those passed to a spouse or civil partner, or those within the usual IHT exemptions), and valuation of gifts which are not exempt – touching on gifts with reservation of benefit, and the income tax pre-owned assets charge, providing a number of worked examples.
