You are here

How to gift your cake and keep it

Reserving a benefit in a gift means that it will continue to be subject to inheritance tax - but what if the gift is rented back to you?

19 November 2014

Taxes are never popular, but inheritance tax is surely one of the most disliked. Not only is it quite a heavy tax compared to others but, rightly or wrongly, it's also often seen as unfair. Having paid tax at all stages of building up their wealth, most people feel they should be able to pass it on to the next generation unhindered.

An obvious solution is to pass on wealth in advance. Unfortunately the law says gifts normally have to be made at least seven years before death to escape inheritance tax. The dilemma here is that unexpected longevity or unforeseen costs can mean that a person finds out (often too late) that they have gifted away
too much and left themselves short.

A similar dilemma can arise about gifting something with more than just a monetary value such as a treasured artwork, or even the much-loved family home. A common response is to gift the item now but hold back on delivery until death. For example,
to gift a painti...

Want to read on?

This article is part of our subscription-based access. Please pick one of the options below to continue.

Already registered? Login to access premium content

SUBSCRIBE for one User

Unlimited access to the entire SJ website for a full year for one user.

  • 10 issues a year delivered to you
  • Digital edition of the magazine for one user – sent to your inbox or accessible through the website
  • Access to premium content on the website
  • Access to the fully searchable online archive of Solicitors Journal, Managing Partner and Private Client Adviser, which spans over 13 years
  • Weekly email newsletter with all the latest news, analysis and features
  • Comment on SJ content and contribute to the SJ community online
  • Advanced search feature
  • Online support
  • Access to SJ app compatible with Android and Apple devices – coming soon!
  • 6 special focuses per year
  • Special offers and discounts on Solicitors Journal and IICJ events

Subscribe

CORPORATE SUBSCRIPTION

Your department or entire firm can subscribe to Solicitors Journal online, providing easy access for all who require it. Discount corporate subscription rates apply, based on number of users.

The Corporate IP Licence includes:

  • Digital copy of the magazine sent to individuals’ inboxes and accessible through the website. Solicitors Journal publishes 10 issues per year
  • Unlimited access to premium content on the website based on IP addresses
  • Unlimited access to the fully searchable online archive of Solicitors Journal, Managing Partner and Private Client Adviser, which spans over 13 years
  • Weekly email newsletter with all the latest news, analysis and features
  • Comment on SJ content and contribute to the SJ community online (username required)
  • Unlimited access to SJ app compatible with Android and Apple devices
  • 6 special focuses per year
  • Special offers and discounts on Solicitors Journal and IICJ events

The Corporate IP Licence is tailored to your firm, making it the most cost effective way for the firm to access Solicitors Journal, and enables the firm to remain compliant with copyright and our Terms and Conditions. This gives you the ability to print and circulate articles within the firm.

To enquire about a Corporate IP Licence for your firm, please contact our Subscriptions Manager on emily.beechey@solicitorsjournal.com.