Christmas gifts to reduce inheritance tax burden?

Inheritance tax may not be a subject people associate with Christmas, but new advice indicates the festive season could be the perfect time to give it some consideration.

Large cash gifts made at least seven years before a person dies are exempt from inheritance tax, Lovemoney.com reports, meaning Britons may wish to consider early distribution of assets when making a will.

And charity wills also avoid inheritance levies, meaning estate administration supporting not-for-profit organisations will avoid the 40 per cent charge applicable to estates worth more than £325,000.

Free will writing advice could help people with probate planning, as other exemptions exist - such as a yearly inheritance tax exemption on cash gifts up to £3,000 - on which legal services professionals will be able to offer guidance.

Last year, the website conducted research into Britain's least popular state levies, finding death duties were the second most hated, beaten only by Council Tax, nominated by 32 per cent of respondents.

Published by Rose Orlik