Tag: CGT
Private Pensions Inherited by Beneficiaries Will No Longer Escape IHT
For years, private pensions have offered a tax-efficient way to pass on wealth to loved ones. Currently, any money left in a private pension fund upon death is exempt from Inheritance Tax (IHT). However, this long-standing benefit is set to end. Following announcements by the Chancellor of the Exchequer, from April 2027, private pensions inherited by beneficiaries will no longer escape IHT.
Lifetime Transfers and the Seven-Year Rule
Potentially Exempt Transfers (PETs) and Chargeable Lifetime Transfers (CLTs) broadly define gifts made during an individual's lifetime. Their classification depends on the nature of the gift and the recipient. It's equally important to note that some lifetime transfers are exempt, meaning they are not subject to tax.
Your Guide to Year End Tax Planning
It’s important to take the time to give your finances a year-end check-up. The 2017/18 tax year ends on 5 April 2018, with the new tax year beginning the following day, on 6 April. These are important dates for financial planning, so it’s important you don’t miss the chance to make the most of valuable tax-efficiencies and allowances.
How to Navigate Capital Gains Tax Allowance
Cuts to the Capital Gains Tax (CGT) exemption mean it is now more critical than ever to arrange your investments tax-efficiently. For the tax year 2024/25, the CGT allowance has been reduced to £3,000, allowing you to make tax-free gains up to this amount. However, any gains above this limit may be subject to CGT.