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Outright gifts


Produced by Tolley in association with
Trusts and Inheritance Tax
Guidance

Outright gifts


Produced by Tolley in association with
Trusts and Inheritance Tax
Guidance
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An outright gift is the most straightforward type of gift. It simply involves the outright transfer of property from one person to another with no conditions attached.

This type of gift is most suitable for clients who want to pass over modest amounts, or give to responsible and capable adults whom they trust to take the property as their own, to do with as they wish.

Outright gifts are less suitable for children and vulnerable people, or for assets over which the client wishes to retain some control. In those cases, a gift into trust will be more appropriate than an outright gift. However, trusts come at a cost and with an administrative burden. Therefore, outright gifts are extremely common. See the Why people use trusts guidance note for an introduction to the trusts regime.

This guidance note focuses on inheritance tax but other taxes are mentioned briefly for completeness.

Inheritance tax (IHT)

IHT is not strictly a charge on gifts but is based instead on the concept of a ‘transfer

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Emma Haley
Emma Haley

Associate at Boodle Hatfield LLP 

Emma Haley is a senior associate solicitor at leading private client firm, Boodle Hatfield LLP, renowned for providing first-class and practical legal advice to wealthy clients around the world.Emma has many years experience in dealing with all aspects of wills, probate, capital taxation and succession planning as well as UK and offshore trusts. Emma currently heads up a technical know-how team and is a regular writer and lecturer on estate planning and inheritance tax and also a member of the Society of Trust and Estate Practitioners.

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  • 06 Dec 2023 14:10

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