{"id":57162,"date":"2025-04-28T10:07:16","date_gmt":"2025-04-28T10:07:16","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/57162\/"},"modified":"2025-04-28T10:07:16","modified_gmt":"2025-04-28T10:07:16","slug":"death-tax-dash-as-families-scramble-to-make-most-of-donald-trump-chaos-personal-finance-finance","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/57162\/","title":{"rendered":"Death tax dash as families scramble to make most of Donald Trump chaos | Personal Finance | Finance"},"content":{"rendered":"

Families are cashing in on the market changes unleashed by Donald Trump<\/a>\u2019s tariffs to slash their inheritance tax bills \u2014 by gifting assets while prices are down.<\/p>\n

Financial experts say changing stock markets have handed wealthy investors a chance to pass on shares and other assets to their loved ones at a fraction of their usual tax cost.<\/p>\n

Since Mr Trump’s hardline tariff moves on trading partners triggered turmoil on global markets, share values have tumbled \u2014 and smart investors are moving fast.<\/p>\n

They’re locking in lower valuations now to reduce the eventual cost of death duties, often saving tens of thousands of pounds.<\/p>\n

Ian Cook, of wealth managers Quilter Cheviot, revealed that some clients had already banked major savings.<\/p>\n

\u201cIf the circumstances are right then it\u2019s a shrewd strategy,\u201d he told the Telegraph<\/a>. \u201cBut it\u2019s difficult to deploy because markets move so quickly.<\/p>\n

\u201cIn the case of the stock market, now is the perfect time to do it as you get a double whammy \u2013 a saving on capital gains tax in the short term, and then a long-term potential benefit on inheritance tax.\u201d<\/p>\n

\u201cWe\u2019re having conversations about how to mitigate tax and gifting \u2013 and the more savvy clients are seizing this golden opportunity,\u201d said Rachael Griffin, a tax and financial planning expert at Quilter.<\/p>\n

The tax move works because the value of a gifted asset is recorded at the time it is handed over \u2014 so if shares are at a low ebb now, that\u2019s the figure used for inheritance tax purposes, even if they soar in future.<\/p>\n

The most commonly used tactic is the \u201cseven-year rule\u201d. If you give something away and live for seven more years, there\u2019s no inheritance tax to pay. Die within that window, and the tax applies on a sliding scale.<\/p>\n

\u201cShares are the more obvious choice as the stock market is more volatile, but you can do this with any asset whose value falls,\u201d added Ms Griffin.<\/p>\n

\u201cThe important thing is to document the value of your asset \u2013 a house or a company that\u2019s harder to value than shares, so you might want to get evaluators in.\u201d<\/p>\n

Inheritance tax \u2014 often dubbed the most hated levy in Britain \u2014 bites at 40% on estates worth over \u00a3325,000, with an extra \u00a3175,000 allowance if you leave your main home to children or grandchildren.<\/p>\n

But it\u2019s not just inheritance tax at play. By handing over assets while they\u2019re worth less, families can also reduce capital gains tax \u2014 which kicks in when an asset is sold or transferred and has grown in value.<\/p>\n

Capital gains tax is triggered once you\u2019ve exceeded the annual exempt allowance of \u00a33,000. Basic-rate taxpayers pay 18% on gains, while higher earners pay 24%.<\/p>\n","protected":false},"excerpt":{"rendered":"Families are cashing in on the market changes unleashed by Donald Trump\u2019s tariffs to slash their inheritance tax…\n","protected":false},"author":2,"featured_media":57163,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3093],"tags":[51,32,474,3121,3122,3124,3123,2499,16,15],"class_list":{"0":"post-57162","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-donald-trump","10":"tag-finance","11":"tag-inheritance-tax","12":"tag-inheritance-tax-2025","13":"tag-inheritance-tax-latest","14":"tag-inheritance-tax-news","15":"tag-personal-finance","16":"tag-uk","17":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114415038842094695","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/57162","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=57162"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/57162\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/57163"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=57162"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=57162"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=57162"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}