Avoiding Inheritance Tax: Smart Gift Strategies

Step-Up in Basis Explained: How Inheriting Property Can Save You Thousands in Taxes

Inheritance tax can feel confusing and overwhelming, but there are legitimate ways to reduce it with proper planning. Here are four key ways to save inheritance tax that everyone should understand. Number one: Use your annual gift allowance. Each tax year, you can gift up to £3,000 and it’s immediately outside of your estate for inheritance tax purposes. If you didn’t use last year’s allowance, you can usually carry it forward for one year only. This is one of the simplest and most effective way