Gifting to the next generation

With higher university tuition fees, soaring housing costs and reduced job security, young people face far more acute financial pressure than their forebears ever have.

As a result, parents and grandparents must increasingly step in to support younger generations at pivotal times in their lives.

Whether it’s a helping hand to get on the property ladder, or providing an income boost, being aware of inheritance tax implications will ensure that nothing negative results from a positive gesture.

It’s important to be aware that any transfer made to another individual from a person’s savings, known as a ‘potentially exempt transfer’ (PET), is subject to the seven-year rule for inheritance tax (IHT) purposes.