This is very interesting. I max out the annual £3000 gift allowance currently so would like to find a way the increase without having to live 7 years.

Go woke get broke

Filing in the IHT403 form is a total nightmare... very confusing for recording gifts out of income!!

Given how previous governments have raided pensions and how so many people lost out hugely when defined benefit schemes were shut down (except for the public sector), this new move starts to look slimy. The government keeps telling us to be on the look out for "pension scams" and people who might be trying to steal our pensions, they just forgot to say they were the ones doing it.

Is there any cap on the amount gifted?

Re IHT taxation of pension pot. If use a portion to take out an annunity eg a 'joint life, second death' covering yourself and spouse, then that uses up a chuck and removes it from the pension pot, and from inheritance tax, right? And so balancing out how use use any pension pot to meet income and inheritance requirements, and minimize tax, is an interesting and vital balancing act.

"Gifts out of surplus income" - a useful option, but documentation (and regularity) are key. Other presenters/experts mention that, to there knowledge, only a few thousand people in the UK are using it, and that HMRC scrutinize it carefully. Doing it whilst still employed is better (out of already taxed income), whereas doing after retirement means have to draw more out of pension to cover it and will affect your post-retirement income tax position.

I lost over $70k when everything started to tank. Not because I was in an exchange that went belly up. I was just stupid to hold and because that's what everyone said. I'm still responsible. It just taught me to be a better investor now that I understand more of what could go wrong. It took me over two years of being in the market, I'm really grateful I found one source to recover my money, at least $10k profits weekly. Thanks Townsend

HMRC dont like regular gifts out of income. You will have to keep onerous records, not just of the gift but showing that it doesnt affect your lifestyle. If you dont have an accountant documenting it all you probably wont get away with this. You should also consider that as you get older you may need to pay care fees and if you havent enough for your full life care, your council will probably seek to recover these 'gifts'.

No tax of the defined benefit death benefit for public sector pensions though. How is that fair?

Thank you for posting this Dianne. Pensions can be a confusing topic for some of us but this explained it clearly and succinctly. I have subscribed as a result. Good luck with your endeavours.

Great vid is better to give with warm hands than cold 🔥🔥

I will be forever grateful to you, you changed my whole life and I will continue to preach on your behalf for the whole world to hear you saved me from huge financial debt with just a small investment, thank you Dorian j Townsend.

Any financial information is always useful. I find your presentation of very useful information too fast. If you could just slow your speech a tad you might find more market penetration. Keep up the good work.

You did not mention in this video how much can be gifted without the other party being taxed on it? You also didn’t advise on the changes from 2026 onwards. Can you explain more about that please

Hello miss sullivan really could do with hand in a very origional situation,help!please.

I'm about to retire and on the form I have to sign, it states that I am not allowed to pay any of my tax free lump sum into a registered pension scheme. Do you know why that is?

I’ve got a mind-bending idea, Dianne. You won’t believe you can do this either. It’s: just pay your taxes. It’s the ‘loop hole’ to avoid accusations of being an immoral, greedy parasite.

I have watched many, many videos on IHT and this is the first one that actually explains it clearly and has managed to set my mind at rest. Thank you and very much appreciated.

Those fees,OUCH!

Just for once, it would be nice to own something that the government doesn't want to take from you. Tax is already paid on money you earn as income. What business is it of the government what I do with my money after that? And what's to stop me from just withdrawing cash and giving it to someone?

I am single, on my death would I have to pay inheritance tax if I nominated my closest relative e.g. sister or niece?

This country is finished. The hard working are being punished while the workshy are better looked after than ever. Why would anyone want to work 100hr weeks towards a better life if it’s going to be so taxed heavily you eventually end up with same lining standards as someone who never worked and live in council housing?

So gifts out of capital over 7 years old would be subject to IHT?

There’s no such thing as a Loop Hole in any circumstance… it’s either legal ( no issues there then ) or it’s breaking the law, that’s already covered by law…. No Loop Holes…. So no need to feel guilty for avoiding taxation it’s legal, evasion is illegal…. Carry on but remember Taxation is Theft either way…

Can't DB pensions be partially bequeathed to someone? Or is that at the whim of the trustees?

We are being squeezed by a government that sees us nothing other than tax cows. All we have to look forward to is tax, tax & more tax! We'll have nothing but the billionaires at the World Economic Forum say we'll be happier!

Thanks for this vLog, its an interesting way to provide a legacy. You said that IHT is paid on the second death of a couple, so if if a couple gives their children a PET gift from capital or savings to help with buying a house does that mean that the 7 year rule is for both lives? If one of the couple dies within 7 years of the gift is IHT liable on the death of the 2nd even though it may be 10 years after the gift?

Rachel from accounts like all communists are going to destroy this country. Labour are the party of the public sector and the north London liberal elites.

So after 2027 are pensions still passed on tax free if you die before you are 75

"Gifts out of surplus income" is something I intend to use more and more, but I'm still not in drawdown, ergo no "income" and frankly have enough cash to see me through to the inevitable end. However, I was fortunate to receive a £50K premium bond win which I would regard as "surplus" income, but would HMRC? Like another who has commented, I intend to sit out this pitiful excuse of a government in the (possibly forlorn) hope the next reverses the IHT tax treatment or one which at least raises the threshold to at least twice, and if not more than the current one, which I believe has been fixed since 2012.

Second career option.. Audio Books.. what a sexy voice, could listen to all day

When does income become capital?

... TROUBLE IS... INTELLIGENT WHITES LEAVING....STUPID THIRD WORLD PEOPLE MOVING IN....GUESS WHAT WILL HAPPEN TO THE UK ... BECOME THIRD WORLD.....GOING TO BE CALLED ..NOT GREAT BRITAIN...BUT STUPID BRITAIN.....

Thank you Dianne. Grateful for your advice!! The labyrinth of tax is a minefield! The incumbent clowns have incentivised me, and others like me, to sit this administration out. Wait for the adults to come in and take control, whoever that might be!

Thank you Lord Jesus for the gift of life and blessings to me and my family $14,120.47 weekly profit Our lord Jesus have lifted up my Life!!!🙏❤️❤️

Accountants talk calmly and objectively about complex tax laws, but if you step back for a moment don’t you think that this level of HMRC intrusion into our personal financial choices is absolutely unacceptable and disgraceful ?

Thanks a ton for your videos! Crypto education is exactly what the world needs right now. I don’t think buy and hold is a wise investment strategy anymore. Not too diluted, and to a certain extent, follow Sophia’s trading ideas and signal tips for your portfolio’s growth and aggressiveness. She’s not only taught me what the cryptocurrency trading world looks like, but she’s also given me a secret to boost my finances. Buying crypto and waiting for the price to soar is not the best way to invest in the market, but buying and trading is. Sophia Haney’s trade signals do the heavy lifting, generating competitive returns for crypto traders and investors in the form of money and peace of mind. Time in the market vs. timing the market. If you keep that mindset as an investor, you’ll stay calm during the storm! Within a few months, I was making a lot more money and have continued on that same path…

Nicely, clearly, and comprehensively explained. My strategy is to lower my estate into the nil rate before I pass. World cruise anyone?

People are considering divorsing their wives and husbands and marry Mother in laws and father in laws to ensure assets keep in the family. Thats how bad its becoming.

What are the rules for unmarried couples, do they get the same benefits as married couples ?

It’s amazing isn’t it? When I started working 40 years ago, I was under the impression the I was paying into a system (I know it wasn’t a fund) to entitle me to a pension when I wasn’t fit enough to work anymore. Furthermore, I had no choice in the matter, the state raided my pay packet and took what they wanted. Now, 40 years later, they move the goalposts and say they can’t afford to pay me. However, they can afford to pay for illegal aliens entering the country illegally. Funny old world ain’t it?

Those on the cusp of retirement with a high % in gilts may also be pleased rather than concerned. Annuities saw a huge % increase in uptake of late to benefit from the yields.

Why would you own Gilts with a Labour government? Borrow borrow tax tax………might be a good time to buy an annuity if that’s your end game….

26 years of international hotel management work experience, I have lived here for 16 years. The situation goes worse and is scary. I decided to leave it next year for a better and peaceful life. Over here more stress and depression for nothing. Next destination is Kingdom of Morocco 🎉😂❤

I'm out and dumping this residency and whole rotten bunch as soon as possible. Id sooner give everything to a foreign more people friendly government to do with as they will than give anything to the UK paracitical grubs..

I moved to the central Algarve 4 years ago. No regrets ! Zero crime, fabulous weather and food .. Highly recommended.

Beautifully explained ! I’m subscribed..best wishes

This is an unexpected and compelling change.

These stupid taxes have seen more millionaires leave the UK recently than any other similar country. So Britain can be proud at being best in the world in scaring away investment and wealth. I know two individuals in my relatively modest circle of friends who have upped sticks and left. No doubt this ill advised tax approaches will see the UK collect less taxes. Ray Dalio the famed economist this week was on the front cover of the FT stating that the UK is entering an unrecoverable debt cycle, in other news, government borrowing figures for December were published and were much higher than expected, while unemployment is on the rise.