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    November 22, 2020
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PROMOTION ONn Debunking the gift myths "Make all you can, save all you can, give all you can," John Wesley, who founded the Methodist movement in the Church of England, once said earnings and deduct and pay Pay As You Earn (PAYE) tax and Class I National owever, when the evangelist, who died in 1703, made that There are other rules for small cash gifts too. You can give as many gifts of up to E250 per person as you want during the tax year as long as you have not used other exemption o the same person. comment it was a few hundred years before an organisation called the Inland Revenue was created. Never in his wildest dreams did Insurance through payroll. Some employers choose to give what is called 'trivial gifts' to Mr Wesley consider that once the THE GIFT OF GIVING government ageney had opened for business, would it impose all sorts of Now you know the facts there are plenty of options to explore. If you have an additional annual Gordon Craft regulations on how we spend our money and gift it. their staff. This can be income you might wish to consider gifting some of that unused income. You could do this by making an annual contribution to your loved one's pension pot perhaps? Contributions to an ISA or Junior ISA up to the value of L50 per person. A slap-up meal might also be a good way to say thank you, as business owners are allowed to spend £150 per head. Annual leave is another effective way of showing staff how much they are appreciated. A days' leave in the run up to Christmas or on their birthday will always be welcomed. GIFTING AND SIFTING TRUTH Many people might not realise that there are limits to how much tax exempt money you can gift. At the moment the annual allowance is E3,000 per tax year. If you did not gift any money the tax year before, then you are allowed to carry the unused amount forward. However, when you are gifting large sums of money, there can be up to 40 per cent Inheritance Tax to pay on the value of any financial gifts given in the seven years before you die. Gifts made in excess of your Nil Rate Band, which is currently E325,000, can see a reduction in the 40 per cent Inheritance Tax level after three years have elapsed from the date of the gift. So, from year four to year seven, from the date of the gift, there is a sliding scale of Inheritance Tax known as Is a great way to ensure someone close to you has some money put away for a rainy day. Plus, ISAS have tax benefits as any interest that is earnt from cash savings is tax free, and any returns on investments are free of Income and Capital Gains Tax. Taking the family on holiday is a great gift without exchanging money or you might want to consider purchasing more tangible items instead of handing over cold, hard cash. The levels and bases of taxation and reliefs from taxation can change at any time. The value of any tax relief depends on individual circumstances. To receive a complimentary guide covering wealth management, retirement planning or Inheritance Tax planning, contact Chasebridge Wealth Management on 01707 643 555 or emal BUSINESS BONUS There are also strict gifting limits for business owners too, but before you go bonus bonkers, remember they are classed as earnings. So you will need to add the value to your employees' other chasebridgewm@sjpp.co.uk. "taper relief. 2A Brosnan House, Byng Drive, Potters Bar, Hertfordshire ENS 1UR 01707 643555 www.chasebridgewm.co.uk Chasebridge Chasbrdgath Maragament adanAcported Peproertatvet andproerts ory ame PuceWeath Managenert D ahen aoed and gnd by he Firanc Conduct Amorti tor ne pupose of adng soy on the Groes wath naagement products and servo, moe s of wh are set out on e Grou witte poprocts Wealth Management PROMOTION ONn Debunking the gift myths "Make all you can, save all you can, give all you can," John Wesley, who founded the Methodist movement in the Church of England, once said earnings and deduct and pay Pay As You Earn (PAYE) tax and Class I National owever, when the evangelist, who died in 1703, made that There are other rules for small cash gifts too. You can give as many gifts of up to E250 per person as you want during the tax year as long as you have not used other exemption o the same person. comment it was a few hundred years before an organisation called the Inland Revenue was created. Never in his wildest dreams did Insurance through payroll. Some employers choose to give what is called 'trivial gifts' to Mr Wesley consider that once the THE GIFT OF GIVING government ageney had opened for business, would it impose all sorts of Now you know the facts there are plenty of options to explore. If you have an additional annual Gordon Craft regulations on how we spend our money and gift it. their staff. This can be income you might wish to consider gifting some of that unused income. You could do this by making an annual contribution to your loved one's pension pot perhaps? Contributions to an ISA or Junior ISA up to the value of L50 per person. A slap-up meal might also be a good way to say thank you, as business owners are allowed to spend £150 per head. Annual leave is another effective way of showing staff how much they are appreciated. A days' leave in the run up to Christmas or on their birthday will always be welcomed. GIFTING AND SIFTING TRUTH Many people might not realise that there are limits to how much tax exempt money you can gift. At the moment the annual allowance is E3,000 per tax year. If you did not gift any money the tax year before, then you are allowed to carry the unused amount forward. However, when you are gifting large sums of money, there can be up to 40 per cent Inheritance Tax to pay on the value of any financial gifts given in the seven years before you die. Gifts made in excess of your Nil Rate Band, which is currently E325,000, can see a reduction in the 40 per cent Inheritance Tax level after three years have elapsed from the date of the gift. So, from year four to year seven, from the date of the gift, there is a sliding scale of Inheritance Tax known as Is a great way to ensure someone close to you has some money put away for a rainy day. Plus, ISAS have tax benefits as any interest that is earnt from cash savings is tax free, and any returns on investments are free of Income and Capital Gains Tax. Taking the family on holiday is a great gift without exchanging money or you might want to consider purchasing more tangible items instead of handing over cold, hard cash. The levels and bases of taxation and reliefs from taxation can change at any time. The value of any tax relief depends on individual circumstances. To receive a complimentary guide covering wealth management, retirement planning or Inheritance Tax planning, contact Chasebridge Wealth Management on 01707 643 555 or emal BUSINESS BONUS There are also strict gifting limits for business owners too, but before you go bonus bonkers, remember they are classed as earnings. So you will need to add the value to your employees' other chasebridgewm@sjpp.co.uk. "taper relief. 2A Brosnan House, Byng Drive, Potters Bar, Hertfordshire ENS 1UR 01707 643555 www.chasebridgewm.co.uk Chasebridge Chasbrdgath Maragament adanAcported Peproertatvet andproerts ory ame PuceWeath Managenert D ahen aoed and gnd by he Firanc Conduct Amorti tor ne pupose of adng soy on the Groes wath naagement products and servo, moe s of wh are set out on e Grou witte poprocts Wealth Management