Tony Wickenden, Technical Connection

Don’t forget – Tax Year End: A time to consider intergenerational planning.

Understandably, most Tax Year End planning focuses on using available income tax and capital gains tax allowances and exemptions and maximising input into ISAs and pensions. But it’s also a great time to have potentially important conversations with your older clients about tax effective intergenerational planning.

Subject to being comfortable that their financial capital will support the life they aspire to and for an appropriate number of years (the latest ONS stats indicate that a 65 year old woman could expect to live, on average, another 21.2 years and a man of the same age another 18.7 years) then a planned strategy of lifetime giving is well worth considering.

At tax year end an intergenerational wealth transfer conversation should begin with the £3,000 annual CGT exemption. If it can’t be used in one tax year it can be carried forward to the next but no further. So, with a fully unused exemption from the previous year a maximum of £6,000 could be given in this way.

There is also the normal expenditure out of income exemption. Not so much a tax year end necessity, more of a good time (along with discussing the use of the £3,000 exemption) to put in place a pattern of regular giving out of income to contribute to efficient wealth transfer. An especially good use of these exemptions could be to pay premiums under a whole of life (joint life last survivor for a couple) protection plan, in trust to provide tax-free funds on death to create or enhance a legacy and/or meet an IHT liability on the rest of the estate.

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This article is intended for regulated financial advisers and investment professionals only.

The statements and opinions expressed in this article are those of the author and don’t necessarily reflect those of Wealthtime or any of its employees. The company does not take any responsibility for the views of the author.

The above is based on understanding of current law and HMRC practice, and Government proposals regarding future law and HMRC practice, as at 23 February 2026, and are presented for general consideration only and no action must be taken or refrained from based on the content of this article alone. Each case depends on its own facts and advice is essential. Accordingly, neither Wealthtime nor Technical Connection, nor any of their officers or employees can accept any responsibility for any loss occasioned as a result of any such action or inaction.

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