A reader of the Financial Times wants to give their granddaughter £25,000 as a wedding present. The gift will form part of her inheritance and the reader asks if her granddaughter will have to pay tax on this.
Elizabeth Neale, partner in Bircham Dyson Bell’s private wealth team, explains that this won’t be the case when the gift is made, however inheritance tax may be payable on part of the gift in the future. She also discusses two relevant tax exemptions to be considered.
The full article is available to Financial Times subscribers here.