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Gifting errors costly for heirs

09-05-2019

Taxpayers have been caught out to the tune of £372m over the past three years having miscalculated complex inheritance tax rules, reports the Telegraph’s Harry Brennan. Hundreds of families have fallen foul of "gift with reservation rules”, meaning they have lost tax relief because they have benefitted in some way from the gift, such as elderly parents gifting their home only to continue living in the property. Rupert Wilkinson of Wilsons said: “In many cases, it is better for parents simply to downsize their home and give children a cash sum, rather than giving a property incorrectly that can give rise to the estate paying a considerable tax bill. To avoid making costly mistakes, parents may want to consider putting sentiment aside and selling the family home.”

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