<p>It is generally well-known that if you make a gift and die within 7 years of making the gift AND your estate is worth more than the Nil Rate Band (£325,000 for the 2014/15 tax year), the gift is likely to attract Inheritance Tax. Inheritance Tax is payable according to a sliding scale depending on when you die in the 7 years following the gift.<br /><br /><!–mep-nl–> <!–mep-nl–><p>However, even if your estate is worth more than the Nil Rate Band, you can still make gifts without tax being due when you die even if you do not live for 7 years following the gift.<br /><br /><!–mep-nl–><!–mep-nl–><h6>Exempt Beneficiaries</h6><!–mep-nl–><!–mep-nl–><p>Gifts of any value between married couples and civil partners are exempt. However, gifts between unmarried couples are not.<br /><br /><!–mep-nl–><!–mep-nl–><h6>Annual Exemptions</h6><!–mep-nl–><!–mep-nl–><p>Gifts totalling up to £3,000 in each tax year are exempt. Also if you do not use up your annual exemption in any year, you can carry the balance forward one year.<br /><br /><!–mep-nl–><!–mep-nl–><p>In addition, you can make gifts of up to £250 per person in any tax year (to as many people as you like).<br /><br /><!–mep-nl–><!–mep-nl–><h6>Wedding Gifts</h6><!–mep-nl–><!–mep-nl–><p>No Inheritance Tax is due on wedding or Civil Partnership gifts worth up to £5,000 to a child, £2,500 to a grandchild or great-grandchild and £1,000 to anyone else. The gift must be made on or shortly before the ceremony.<br /><br /><!–mep-nl–><!–mep-nl–><h6>Gifts to charities and political parties</h6><!–mep-nl–><!–mep-nl–><p>No Inheritance Tax is due on gifts to ‘qualifying’ charities, universities, museums and some political parties.<br /><br /><!–mep-nl–><!–mep-nl–><!–mep-nl–><h6>Gifts out of expenditure and to help with living costs</h6><!–mep-nl–><!–mep-nl–><p>Regular gifts made out of your after-tax income (not capital) are exempt providing making such gifts leaves you enough income to continue your
normal lifestyle.<br /><br /><!–mep-nl–><!–mep-nl–><p>Gifts to assist with living costs are also exempt if such gifts are made to an ex-spouse, child under 18 or other person dependent on you, due to disability, age or illness.<br /><br /><!–mep-nl–><!–mep-nl–><p>It is extremely important to take advice before making any gifts, particularly those gifts made out of expenditure and to help with living costs. It is also advisable to keep records of gifts made to assist your Executors, who will need to deal with your estate.<br /><br /><!–mep-nl–>