There are typically two main drivers for gifting; giving a financial boost to someone you care about or, depending on your circumstances, as part of efficient tax planning.
These don’t have to be exclusive of each other; however, uncovering your personal driver for gifting will play an important role in deciding the best way to go about it.
Laws and tax rules may change in the future and personal circumstances also have an impact on tax treatment; however, most of the time gifting earlier is better if tax efficiency is your goal. Yet waiting until the recipient of the gift is in a position to use it wisely may override this if helping a loved one is your main goal.
Seeking professional financial advice could ensure your gifts are fulfilled in the most efficient way possible.
Different ways of gifting can have different tax consequences. It can be a complex area so before you take any action, we’d always recommend you seek advice from a financial planner.
If you are yet to find a Financial Planner, you can book a free, no obligation consultation with us today. Our dedicated tax team works to ensure our clients’ finances are arranged as tax-efficiently as possible.
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