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Press comment: Detrimental lack of knowledge on lifetime gifting rules


If you’re covering HM Revenue and Customs research report on lifetime gifting please see the following comment from Rachael Griffin, tax and financial planning expert at Quilter:

Rachael Griffin“Today’s research from HMRC shows almost half (45%) the population are unaware of the tax implications around gifting. The conclusion of the report highlights that those who are gifting are doing so not to avoid taxes, as the inheritance tax rules are inconsequential to most, but to support their family members. While the report shows that just one eighth of the population were gifters in the prior two years to the survey, the economic shifts in the country suggest that number is going to dramatically increase in the coming years. The amount of wealth within the country continues to skew towards older generations who want to assist upcoming generations who are set to be less well-off and are struggling under the weight of increased living costs, sky rocketing property prices and chunky student loans.

“What the report doesn’t address is how that lack of knowledge can be immensely detrimental. Gifting during a lifetime has become a perverse game of Russian roulette thanks to potentially exempt transfers. Essentially people have to ask themselves: Do you think you’ll live longer than seven years? How much money are you willing to put on that bet?

“With the Office for Tax Simplification already taking a close look at inheritance tax, it’s interesting to see that HRMC is also doing some digging. One way to simplify things is to update the heavily outdated gifting allowance. The annual IHT gifting allowance has remained unchanged At £3,000 since 1981 and had the allowance been tracked to inflation, it would be permissible to gift £11,296 per tax year in 2018.

“This report adds credence to that proposal as it shows that people are not trying to dodge taxes when they are gifting. They are, in part, trying to ease the ever intensifying intergenerational conflict and help money flow to their loved ones that need it most.”

For more information contact

Kathleen Gallagher023 8072 629307990

Notes to Editors:

About Quilter plc:

Quilter plc is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

Quilter plc oversees £95.3 billion in customer investments (as at 31 March 2020).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions; and discretionary fund management.

The business is comprised of two segments: Advice and Wealth Management and Wealth Platforms.

Advice and Wealth Management encompasses the financial advice business, Quilter Financial Planning; the discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business.

Wealth Platforms includes Old Mutual Wealth UK platform and Quilter International, including AAM Advisory in Singapore.

The Old Mutual Wealth Heritage life assurance business was acquired by ReAssure Group Plc on 2 January 2020.

Since its IPO in June 2018, Quilter plc’s businesses have progressively rebranded to Quilter, as follows: 

  • Quilter Financial Planning (previously Intrinsic)
  • Quilter Private Client Advisers (previously Old Mutual Wealth Private Client Advisers)
  • Quilter Financial Advisers (previously Charles Derby Group)
  • Quilter Financial Adviser School
  • Quilter Cheviot
  • Quilter Investors
  • Old Mutual Wealth (becoming Quilter Investment Platform in 2020)
  • Quilter International (previously Old Mutual International)

This press release is for journalists only and should not be relied upon by financial advisers or customers.

Please remember that past performance is not a guide to future performance. The value of investments and the income from them can go down as well as up and investors may not get back any of the amount originally invested. Exchange rate changes may cause the value of overseas investments to rise or fall.

This communication is issued by Quilter plc.  Registered office: Millennium Bridge House, 2 Lambeth Hill, London EC4V 4AJ, United Kingdom. Registered number: 6404270.  Registered in England.