Any gifts you make to individuals will be exempt from Inheritance Tax as long as you live for seven years after making the gift. These sorts of gifts are known as ‘Potentially Exempt Transfers’ (PETs).

However if you give an asset away at any time, but keep an interest in it – for example you give your house away but continue to live in it rent-free – this gift will not be a potentially exempt transfer.

If you die within seven years and the total value of gifts you made is less than the Inheritance Tax threshold, then the value of the gifts is added to your estate and any tax due is paid out of the estate.

However, if you die within seven years of making a gift and the gift is valued at more than the Inheritance Tax threshold, Inheritance Tax will need to be paid on its value, either by the person receiving the gift or by the representatives of the estate.

If you die between three and seven years after making a gift, and the total value of gifts that you made is over the threshold, any Inheritance Tax due on the gift is reduced on a sliding scale. This is known as ‘Taper Relief’.

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If you would like to know more about how our tailored services can best suit your needs, do not hesitate to get in touch. Although based in Greater Manchester, we can provide high-quality legal assistance to those who need it around the UK. Call us today on 0161 928 3848, or fill in the online contact form.

Testimonials

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Pleasure to do business with McHale & Co. Everything is thoroughly explained, whatever questions we asked. Easy to make contact, we as a family have dealt with your company before and cannot fault any part of our dealing with yourselves.

Mrs L

Helen was excellent. Very clear in her explanations of options and implications of decisions made in our wills.

Mr & Mrs T

A big thank you to Grace Kennedy who went the extra mile and provided me with lots of information regarding making, signing and checking the process for me and after signing a list of use points and information. Excellent customer/client care.

Mr S

I feel that the people employed within this firm really listen and respond accordingly

Mrs S

Many thanks for your assistance with everything (Helen Green), you’ve made it all seem a lot more manageable at a difficult time.

Ms W

Helen, can I just thank you for the professional and thorough way in which you have dealt with this matter and your advice has been very welcome at times. Worth every penny for peace of mind.

Mr L

Extremely helpful and considerate. Very attentive . Nothing was too much trouble from the first phone call to receiving a hard copy of the will. Couldn’t have asked for more. I would not hesitate in recommending you to friends and family. A fantastic service all round. Thank you Michaela.

Mr M

I would like to thank you (Paul Fitton) for your most professional guidance and advice, I appreciate the effort and time you devoted to my issues on this subject.

Mr S

Mr Nattrass is always understanding and helpful and takes time to listen and explain. It is always a pleasure to deal with him. Also, your reception staff are lovely and welcoming.

Mrs J

The service we received from Helen Green was fantastic, nothing was too much trouble. We would recommend Helen without question.

Mr J

The service provided was excellent. Many thank to John Nattrass for all his input and execution of our wills.

Mrs H

I would like to commend Michaela for her warmth, compassion and professionalism. It was because of her superb persona that I am using McHale & Co. Thank you very much Michaela!

Miss J

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