Our financial advisers in Sutton Coldfield work with a wide range of clients who want to help younger members of their family financially, but also avoid potential tax pitfalls.
Younger people find it a struggle to get on the property ladder and look for help from parents and grand-parents. However, if you are thinking of giving money away you need to seek the advice of financial advisers in Sutton Coldfield, to ensure you don’t fall foul of tax rules.
The House of Lords Committee on Intergenerational Fairness and Provision recently quoted data from an April 2018 survey conducted by Douglas McWilliams, their report said that 27% of all UK house purchases were made with contributions from the older generation, with gifted lump sums averaging £5,000 to £6,000.
It is essential that you get advice from our qualified financial advisers in Sutton Coldfield, because you have an annual exemption for Inheritance Tax (IHT) purposes, which allows you to give away up to £3,000 each tax year. This allowance can be carried over to the next tax year meaning that you could potentially give away as a gift £6,000 without it affecting your estate’s IHT liability.
People are living longer, so it is becoming even more important to talk to financial advisers in Sutton Coldfield for a number of reasons. For example, inheritances may become available later in life, there is also the possibility of smaller inheritances or none at all because the older generation may need to use the funds themselves for care, or just to enjoy their retirement. Our financial advisers in Sutton Coldfield increasingly work with people to help them plan to fund the gap between the State Pension and what they need for a comfortable retirement. It is also important to say that we believe that financial planning is not all about retirement. You need to have a happy and fulfilled life throughout your life.
Inheritance Tax Planning is not regulated by the Financial Conduct Authority.
Tax treatment varies according to individual circumstances and is subject to change.
Tax Planning is not regulated by the Financial Conduct Authority.
Talk to our financial advisers in Sutton Coldfield or across the region about our Lifestyle Financial Planning. Your first meeting is at our cost and without obligation. We will always provide financial advice that is honest, open and transparent.