Inheritance tax - What people get wrong about the 7-year rule

Comments · 590

• BM

  @bmonck5110 · 11 months ago

  Very useful. &nbsp;Never heard that properly explained before. <br>Also depressing and unfair it isn’t more logical

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• GA

  @Gazza-h9o · 11 months ago

  Downsize to keep your house under IHT value and spend spend spend. You can &apos;treat&apos; your friends/family along that journey (annual holidays etc)should you so desire and enjoy your money with your loved ones whilst you are alive. Guiding your children to make and enjoy their &nbsp;own fortunes through life is something we should all work on, enjoy your money together and enrich your lives now.

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• BI

  @bikeman123 · 11 months ago

  The taper relief on gifts only applies on gifts above the £325k nil rate band. Most youtube &apos;specialists&apos; dont mention this. At last a video that says this.

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• RI

  @richardsutton01 · 11 months ago

  I&apos;m in the IHT bracket featured in the calculations and I&apos;m currently reduce my estates exposure to IHT but I had not realised that the 7 year rule was not quite as simple as I had thought. Thanks for the heads-up.

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• DA

  @daveoram7249 · 11 months ago

  I was also unaware of the 7 year rule being so complicated and loaded in favour of the Government. You can also currently pay as much as you like to your Children as long as you can prove this is surplus money from income after paying Bills etc. It has to be a regular fixed amount and you need to be able to prove this is surplus funds from income. If the Government ever changed the Giving Rules I am sure people will find ways around it, e.g. give cash, buy things and transfer ownership or just pay for stuff direct

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• BA

  @bal75157 · 8 months ago

  Brilliant explaination via the example! Totally had it wrong until this point 👏 &nbsp;👏

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• DA

  @danslatter461 · 11 months ago

  Very informative ! Thank you very much!

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• ED

  @eddyo6286 · 10 months ago

  A really worthwhile podcast, giving a clear concise explanation of the 7 year rule

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• BI

  @BibTheBoulderTheOriginalOne · 11 months ago

  I have long ago reached the conclusion I will spend all my hard-earned on myself. Indeed I have already been doing so for the last decade.

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• MO

  @moonquay1307 · 11 months ago

  It’s a very informative video. I would,however, disagree with a key point that Ed made towards the end of the video. Ed said in his view it would be highly unlikely for upcoming budget changes to be retrospective. I have been saving for 34 years into a self administered pension scheme - only for the government to now apply an IHT rate of 40% on all contributions made regardless of when contributions were made. This government is now making changes that apply retrospectively - in my case going back as far as 1991!

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• ST

  @stephencole9289 · 6 months ago (edited)

  One important point is that taper relief only actually affects gifts over £325k !<br>Small gifts eg £100k reduce the NRB by £100k for the FULL 7 years and there is no tapering effect!, and so on any moderately wealth estate will end up incurring the full 40% tax implication unless the gifter survives &gt; 7 years.<br>(as mentioned at <a href="https://www.youtube.com/watch?v=nn65omSTMPU&amp;t=365">06:05</a>)

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• RO

  @robertseymour4708 · 11 months ago

  Finally a video that gets this right. Taper the tax not the gift! Someone tell the &apos;experts&apos; on This Is Money (Daily Mail).

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