A recent AJ Bell survey of over 1,500 investors revealed that 25% are using their investments to help financially support family or friends. Of those surveyed, 15% had already withdrawn money, while 10% were considering it.
Interestingly, 76% of these investors had gifted sums over £2,000. The most common reason? Helping family members get on the property ladder.
- 17% contributed to house deposits.
- 12% helped cover mortgage costs.
Other motivations included:
- Covering one-off expenses like replacing a car or boiler (17%).
- Helping with household bills such as utilities (9%).
- Supporting educational costs (6%) or rent (3%).
Meanwhile, 22% of gifts were given with no specific purpose.
This trend may grow as inheritance tax allowances tighten under the new budget. With potential changes such as pensions being brought under inheritance tax from 2027, gifting could become an increasingly attractive option for investors.
If you’re concerned about inheritance tax or want to maximize the value of your gifts, we recommend consulting us for expert advice. There are numerous tax implications and considerations to keep in mind when making gifts, so a professional conversation is always a smart first step.
For tailored guidance, reach out to us today and ensure your gifting strategy is both impactful and tax-efficient.
If you have any questions or wish to explore your options, reach out to us. Our team of experts is ready to assist you. please don’t hesitate to contact us on 0333 241 3350 or email info@richmondhousewm.co.uk
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