How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Buachaill Your Own Question
Buachaill, Barrister
Category: Law
Satisfied Customers: 10974
Experience:  Barrister 17 years experience
Type Your Law Question Here...
Buachaill is online now

I wish to transfer about £30,000 of my investment

This answer was rated:

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?

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.

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.

3. Please Rate or Accept the answer as unless you Rate or Accept the answer your Expert will receive no payment for answering your question.

Buachaill and other Law Specialists are ready to help you