Define: Chargeable Gift

A chargeable gift refers to a transfer of assets made by an individual during their lifetime, usually as part of inheritance or estate planning, which is subject to taxation under the relevant tax laws. In many jurisdictions, including the United Kingdom, chargeable gifts are subject to gift taxes or inheritance taxes, depending on the timing and circumstances of the transfer. The tax liability on chargeable gifts typically depends on factors such as the value of the gift, the relationship between the donor and the recipient, any exemptions or reliefs available, and the applicable tax rates. Individuals making chargeable gifts may need to report the transfers to the tax authorities and pay any taxes due within specified timeframes to comply with the law. Proper estate planning and consultation with tax professionals can help individuals understand the implications of chargeable gifts and minimise their tax exposure while maximising the benefits for intended beneficiaries.

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This glossary post was last updated: 29th March, 2024.