Martin Lewis issues £3,000 Inheritance Tax warning for grandparents wanting to ‘give’ money to grandchildren | Leicestershire Live

Martin Lewis issued a key £3,000 Inheritance Tax tip on Grandparent Gift Allowance. A listener asked about the Not The Martin Lewis Podcast, which is known for bringing in experts to unpack topics such as inheritance tax and early gifts from grandparents.

The person asked, “My grandparents want to give me some of my inheritance early. I understand that I can give £3,000 each tax free. But since this is the first time, can they carry over last year’s allowance?”.

Now, according to Birmingham Live, tax consultant Kari Mellon has spoken out. Kari, from Opes Tax, responded positively, saying: “Yes, £6,000 in the first year and then £3,000 for each year after that.”

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Money-saving expert Martin Lewis chimed in on BBC Sounds saying: “They may offer you more if they have surplus income they could offer.”

Financial expert Rebecca Benneyworth of Rebecca Benneyworth & Co added her insight: “Provided you make regular gifts from surplus income that do not affect your standard of living, these gifts are immediately exempt from inheritance tax.”

She also detailed the process of determining excess income for such gifts: “But first of all, you have to identify what the excess income is. If you take all the income you receive in a year, subtract all your expenses. including a new car or a holiday and the tax liability if you have a surplus left then that is the maximum you can give.”

She continued: “There was a case a few years ago where someone died after making just one or two gifts out of their surplus income, but the executors were able to prove that the intention was there to make it a pattern very regularly, so they were But if you’ve done them three or four times a year for a few years, you’ve got a really good pattern there.

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