Inheritance Tax

[SAH]

Could someone please clarify the rules regarding Inheritance Tax. Would I be correct in saying that the limit currently stands at �300,000 and therefore any amount of money can be given away as an exemption regardless of the various limits, providing the total estate does not exceed �300,000?

[anniebird]

All gifts that are in excess of the current exemptions are deemed to be 'Potentially Exempt Transfers' and if the donor does not survive for seven years will be added back to the estate to see if it then exceeds the Inheritance Tax threshhold. If it does then IHT will be payable otherwise no it will not.

[SAH]

Thanks for your prompt reply anniebird - very helpful!