Sean McCann

I am a 74-year-old self-employed woman who has operated my own firm as a sole trader for the past 35 years. I am still working and intend to keep doing this until I sell my company, but someone recently told me that pension tax relief will not be granted until the age of 75. Should I put the maximum lump sum I can afford into my pension before the deadline to get the tax relief?Also, why do people like me lose tax relief at 75? It doesn't appear that those of us in our seventies are being treated very well.

It doesn't need complicated trusts or bonds, expensive advice, or endless admin. The exemption is described as giving out of surplus funds. In other words, you can spend as much money as you please as long as it comes from your income rather than existing assets. Unlike most other gifts, those made in this way are unaffected by the seven-year monarchy, although inheritance tax may be levied if you die within seven years of making them. Gifts made from regular, surplus income are tax-free and will not incur a bill later today.

A growing number of families are searching for ways to lower their costs as inheritance tax receipts hit a new high of £7.1 billion a year. There are many legitimate ways to give money to loved ones without incurring tax from making gifts throughout your lifetime to establishing trusts. However, doing your homework is well worth it before you steamroll ahead. If the family is unexpectedly paying the bill, you may inadvertently land them with an unexpected tax bill. Wealth & Personal Finance has eight key mistakes you should avoid when planning the future of your estate and how much money they could cost you.