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Buachaill
Buachaill, Barrister
Category: Law
Satisfied Customers: 10623
Experience:  Barrister 17 years experience
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I wish to transfer about £30,000 of my investment

Resolved Question:

I wish to transfer about £30,000 of my investment stocks/shares to a good friend, as a gift. I understand that she will be liable to CGT as & when she sells any of them; and to Income Tax on any dividends - but if I subsequently die, will there be any Inheritance Tax liability on the value of the portfolio? and at what rate, please?
Submitted: 1 year ago.
Category: Law
Expert:  Buachaill replied 1 year ago.

1. Dear *****, the liability of your gift to your good friend will last, on a tapering basis, for seven years after the date of the making of your gift. There is a reduction in the level of Inheritance Tax each year over the seven years until there is zero liability after seven years. So, if you live 7 years, your good friend will have no potential liability to Inheritance Tax.

Expert:  Buachaill replied 1 year ago.

2. Be aware that the headline rate on anything in your estate over GBP 325,000 is 40%. However, there is a proportionate reduction in this rate each year over the seven years.

Expert:  Buachaill replied 1 year ago.

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