Whether you make a regular donation to charity or leave a legacy in your will, using your wealth to support good causes can deliver much more than a financial return. Adopting some of the principles of philanthropy can increase the benefits of giving, both for you and for your chosen charities.
Inheritance tax (IHT) is often viewed as a ‘voluntary tax’, in that it is perfectly legal to plan ahead so that you can sidestep having to pay it. All that it requires is enough time to carry through the careful application of some savvy financial planning and you can do just that.
The tax gap for inheritance tax (IHT) stands at £600 million a year, the Office of Tax Simplification (OTS) has found.
In percentage terms, the shortfall equates to 10%. The IHT tax gap, according to the OTS, is “relatively high as a percentage of the total IHT due, compared to other taxes”.
Every year hundreds of thousands of people needlessly have to fill in inheritance tax (IHT) forms, a process the Office for Tax Simplification (OTS) has described as ‘complex’ and ‘old-fashioned’.
Kyle Caldwell outlines five lesser-known tax planning practices that can help keep your finances under the taxman's radar.
Inheritances become more common as individuals get older, with those aged 55 to 64 years the most likely to benefit, according to figures from the Office for National Statistics.
The ONS analysed data from its Wealth and Assets Survey data covering July 2014 to June to 2016.
It found that the average inheritance across all age groups is now £11,000.
With just a couple of days until chancellor Philip Hammond steps up and delivers the Autumn Budget, speculation is mounting over the contents of his red briefcase.
So below we round up predictions for the world of personal finance, looking at possible changes to pensions, investments and tax.
Inheritance tax (IHT) receipts are on course to hit a fresh record high, which will put further pressure on chancellor Philip Hammond to reform the system.
One in five parents has given money to their children in an attempt to reduce the amount of inheritance tax their families will have to pay when they die.
A total of £227 billion has been transferred, with the average value of assets given away £32,920, according to research from Direct Line. A further 19 per cent have not given their children any money yet, but plan to do so in the future.
Investing in a discretionary trust is often seen as a dodge for the very wealthy, to reduce the inheritance tax due on their estates when they die and protect family businesses where succession planning may be an issue. However, discretionary trusts can also be beneficial for those with ordinary estates.