Penguin Tax Planning in the News!
Craig Palfrey, the Director of Penguin Tax Planning, has been featured in the Express Newspaper.
Featured in the article “Take advantage of your tax breaks”, Mr Palfrey was commenting on how you can save tens of thousands of pounds through careful inheritance tax planning.
Here’s what Craig had to say:
Save tens of thousands of pounds through careful inheritance tax (IHT) planning.
Currently, you can leave £325,000 worth of assets tax-free with any surplus taxed at 40 per cent. Married couples don’t pay IHT when the first partner dies which means a couple can leave £650,000 tax-free.
You can reduce your family’s liability by giving money away, known as a “potentially exempt transfer” but only if you survive another seven years, says Craig Palfrey of independent financial adviser and planner, Penguin Wealth.
“You can also make cash gifts of up to £3,000 a year, safe in the knowledge that this money will also be exempt from IHT when you die. For a married couple this allowance is doubled to £6,000.”
You can also give as much as you like out of your regular disposable income, Palfrey says. “Somebody on an annual income of £50,000 who spends £40,000 could give away £10,000 each year, and their children will save 40 per cent IHT on this too.”
“Potential tax saving: If a couple each gifts £3,000 for 10 years, that will reduce the size of their estate by £60,000. Assuming that was all eligible for IHT at 40 per cent, their children will save £24,000.
You can view the full article here: http://www.express.co.uk/finance/personalfinance/463131/Take-advantage-of-your-tax-breaks