Inheritance Tax

[anneatreads]

Is it true that you can give any number of gifts of £250 in one tax year without it being subject to Inheritance Tax?

[factor-fiction]

For most people inheritance tax doesn't apply. Are you sure it's an issue here?

[sandyRoe]

It seems unlikely. Say you gave that sum every day for a year. It would be close to 100k.

[factor-fiction]

This thread will help
http://www.theanswerb.../Question1029787.html

[factor-fiction]

This extract is relevant
Small gifts

You can make small gifts up to the value of £250 to as many individuals as you like in any one tax year. However, you can't give more than £250 and claim that the first £250 is a small gift. If you give an amount greater than £250 the exemption is lost altogether.

You also can't use your small gifts allowance together with any other exemption when giving to the same person.

[ubasses]

Any regular gifts you make out of your after-tax income, not including your capital, are exempt from Inheritance Tax. These gifts will only qualify if you have enough income left after making them to maintain your normal lifestyle. So if you can afford it you can give money away fron your earned income as well.