Giving money to charity with Gift Aid adds 25% from the government but a gift to your family could save your family an extra 40%. As this article shows £3000 per tax year may not seem a great deal of money but it could add up over many years. Nevertheless, this £3000 sum has not increased since 1986.... If the government had increased this annual allowance by RPI the sum would now be £8000 per person per tax year.
Still, remember there are other allowances you can utilise for your family, such as small gift exemption and gift out of surplus income. Whilst both of these allowances seem easy to rely on they can cause all sort of issues for your family once you have died.
Whilst you are alive you should not just read what you are allowed to give away but also check out what HM Revenue and Custom require to be declared when you die, as that is not always easy for family to deal with!
Bah... Humbug! There was nothing that Ebenezer Scrooge despised more than giving presents, especially at Christmas. But wait! There was one thing he hated more. And what was that? Well, it is a little known fact that Mr Scrooge's greatest obsession was the idea of suffering more inheritance tax if he didn't make gifts.Scrooge was visited late one evening by the Ghost of Christmas Presents Past and was tormented by what he learnt. He found out that he had been wasting all his many years by failing to take advantage of some of the simplest inheritance tax planning opportunities.'Annual Exemption', Ebenezer exclaimed, as he learnt that he had had wasted 40 years' worth of inheritance tax free giving. 'At £3,000 per year you could have given away £120,000 inheritance tax free', explained the Ghost.