Inheritance tax questions answered

Those with questions concerning inheritance tax will be interested to hear that a financial expert has recently offered advice on the subject.

A man from Scotland asked Thisismoney.co.uk:"How much money can my father give me as a gift without paying tax on it?"

Financial expert Laura Howard offered some inheritance tax planning advice to him, saying that every year the man's father can gift him as much as £3,000 without inheritance tax liability being a problem.

Ms Howard added that people can also make use of any money they have left from the previous tax year's unused £3,000 balance.

However, she pointed out that the man's father would have to have an estate worth more than £325,000 and pass away within seven years of giving him the money for inheritance tax to apply.

Moreover, the government has promised to freeze this threshold until 2015.

In addition, Tricia Phillips wrote for the Daily Mirror that people who make sizeable gifts should keep records of doing so, so that excessive state levies will not hit their estates after their death.

Published by Phil Hammond