Parents and grandparents missing out on gifting reliefs

The Bank of Mum and Dad is more in demand than ever before, helping the younger generation join the property ladder, pay for university tuition fees, purchase a vehicle or contribute to other costs.

However, new research shows that almost half of parents and grandparents fear incurring a hefty inheritance tax bill because they fail to understand the increasingly complex rules. 

Key Retirement, an equity release provider, who undertook the research reported the headlines as:

  • 47% of parents and grandparents said they did not understand the tax rules around gifting
  • Almost three quarters (73%) admit they find the rules ‘very complicated’
  • 37% would gift a ‘living inheritance’ if tax breaks to boost intergenerational wealth transfers were provided by Government

The research press release and detail can be read by clicking here

 

Additionally, here are a couple of links that cover the research headlines in more detail;

Daily Express http://www.express.co.uk/finance/personalfinance/816900/Taxman-family-risk-of-tax-bill-with-complex-rules

FT https://www.ft.com/content/ba24b034-502b-11e7-a1f2-db19572361bb

 

Our free advice page with IHT rates can be read by clicking here