All present and correct:Gifting income and IHT exemption

Gifting income has frequently been ignored as not being significant enough make a difference to the problem of inheritance taxation. Not so, says Danny Cox - it actually creates some attractive planning opportunities

Inheritance tax planning is like trying to photograph toddlers - you are aiming at a moving target. Reducing inheritance tax (IHT) takes commitment. Reduce the taxable value of an estate and IHT will be saved but this means making a commitment to gift or spend capital, gift or spend income, or both. Most IHT plans concentrate on capital issues. This makes sense since the larger the amount involved, the greater the potential saving and this would include the use of assets that qualify for IHT exemption under business property relief. However, planning with income is often ignored. Surp...