{"id":19409,"date":"2019-06-20T11:31:16","date_gmt":"2019-06-20T11:31:16","guid":{"rendered":"https:\/\/smh.group\/?p=19409"},"modified":"2023-02-15T13:39:43","modified_gmt":"2023-02-15T13:39:43","slug":"how-well-do-you-understand-inheritance-tax","status":"publish","type":"post","link":"https:\/\/devstagesite.co.uk\/smhgroup\/how-well-do-you-understand-inheritance-tax\/","title":{"rendered":"How well do you understand inheritance tax?"},"content":{"rendered":"\n<p><strong>A survey by HMRC published in May concluded that the public have a relatively poor knowledge of <span style=\"text-decoration: underline;\"><a href=\"https:\/\/devstagesite.co.uk\/smhgroup\/wills-probate\/estate-tax-planning\/inheritance-tax\/\">inheritance tax<\/a><\/span> (IHT) rules and lack of confidence in what they do know. <\/strong><\/p>\n\n\n\n<p>HMRC recently commissioned a survey of 947 people who had made gifts in the last two years. To assess knowledge of the IHT system among these donors, they were asked eight questions, which are shown below. Now it is your turn to try:<\/p>\n\n\n\n<table class=\"wp-block-table\"><tbody><tr><td>   <strong>Question<\/strong>   <\/td><td>     <strong>Statement<\/strong>   <\/td><td>\n  <strong>True\n  or False?<\/strong>\n  <\/td><\/tr><tr><td><strong>   1<\/strong>    <\/td><td><strong>   A   donation to a charity or a qualifying political party can count as a gift   that is exempt from inheritance tax   <\/strong><\/td><td>\n  &nbsp;\n  <\/td><\/tr><tr><td>  <strong> 2 <\/strong>   <\/td><td><strong>   Inheritance   tax may be paid on gifts totalling more than \u00a3325,000 if the person who makes   the gifts dies within seven years of making them.   <\/strong><\/td><td>\n  &nbsp;\n  <\/td><\/tr><tr><td> <strong>  3<\/strong>    <\/td><td><strong>   A   person can give as many gifts of \u00a3250 as they want in a year and not be   subject to inheritance tax, as long as each gift is to a different person   <\/strong><\/td><td>\n  &nbsp;\n  <\/td><\/tr><tr><td>   <strong>4<\/strong>    <\/td><td><strong>   Inheritance   tax may be charged at 40% on gifts to individuals given by the deceased in   the three years before their death   <\/strong><\/td><td>\n  &nbsp;\n  <\/td><\/tr><tr><td>   <strong>5 <\/strong>   <\/td><td><strong>   A   gift can be the difference between the value of property and the actual price   that the buyer pays   <\/strong><\/td><td>\n  &nbsp;\n  <\/td><\/tr><tr><td>  <strong> 6<\/strong>    <\/td><td><strong>   Inheritance   tax will always be payable on gifts over \u00a33,000 given in the seven years   before death   <\/strong><\/td><td>\n  &nbsp;\n  <\/td><\/tr><tr><td>  <strong> 7<\/strong>    <\/td><td><strong>   A   gift up to \u00a31,500 to a niece or nephew getting married is always tax free   <\/strong><\/td><td>\n  &nbsp;\n  <\/td><\/tr><tr><td>  <strong> 8 <\/strong>   <\/td><td> <strong>  A   married couple or civil partners can leave up to \u00a3950,000 to their children   without paying inheritance tax   <\/strong><\/td><td>\n  &nbsp;\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<p><\/p>\n\n\n\n<p>58% answered five or more questions correctly,\nwhile just 37% gave themselves a confidence rating of over 6 out of 10 on\nanswering the questions. After adjusting for confidence levels,the survey\nconcluded that the proportion with a \u201chigh knowledge\u201d \u2013 as opposed to simply\nlucky with their answers \u2013 was just one in four. <\/p>\n\n\n\n<p>The correct answers are shown below. Whatever your score, it is worth considering why HMRC should have undertaken such a survey at this time. It may be no coincidence that the Office of Tax Simplification is due to publish its second report on IHT simplification soon. Rationalising the rules on lifetime gifts is an obvious target, but as ever with simplification, there would be some losers. <\/p>\n\n\n\n<p>We can help you consider where you might stand on the wining and losing scale. Drop one of our <strong><a href=\"https:\/\/devstagesite.co.uk\/smhgroup\/financial-services\/\">Chartered Financial Planners<\/a><\/strong> a line on <strong>0114 266 4432<\/strong> or <strong><a href=\"https:\/\/devstagesite.co.uk\/smhgroup\/wp-admin\/info@smhca.co.uk\">info@smhca.co.uk<\/a><\/strong> to arrange a no obligation appointment. <\/p>\n\n\n\n<p class=\"has-small-font-size\"><em>The value of tax reliefs depends on your\nindividual circumstances. Tax laws can change. The Financial Conduct Authority\ndoes not regulate tax advice. <\/em><em>&nbsp;<\/em><\/p>\n\n\n\n<p><strong>Answers: True: 1, 2, 3, 4, 5, 8\u00a0 False:\u00a0 6, 7<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A survey by HMRC published in May concluded that the public have a relatively poor knowledge of inheritance tax (IHT) rules and lack of confidence in what they do know. <\/p>\n","protected":false},"author":4,"featured_media":16788,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[16,2],"tags":[77,11,12,13,289,247,19],"class_list":["post-19409","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-financial-services","category-wills-probate","tag-financial-planning","tag-hmrc","tag-iht","tag-inheritance-tax","tag-office-of-tax-simplification","tag-retirement-planning","tag-tax"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>How well do you understand inheritance tax? 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