Gifts can leave your estate for good, but the 7-year rule and the allowances decide when. Enter a gift to see what happens if you live, or do not live, seven years.
1The gift
£
£
2Allowances you can use
3When might you die?
The tax on a gift falls the longer you live after making it. Pick how long after the gift.
Inheritance tax on this gift
£0
Tax-free part of the gift£0
Taxed part of the gift£0
Gifts that skip the 7-year rule altogether
Regular gifts from surplus income. No limit and no 7 years, if they are regular, come from income and do not cut your standard of living. Keep records.
£3,000 a year (and last year's unused £3,000), £250 per person, and wedding gifts of £5,000 to a child, £2,500 to a grandchild, £1,000 to anyone else.
Gifts to a husband, wife or civil partner and to charities.
A warning. Giving away your home but still living in it does not remove it from your estate. Take advice before any large gift.
Estimate only. Uses a £325,000 nil-rate band (frozen to at least April 2031), 40% tax, and taper relief of 20% off the tax for each year after year three (tax rates of 32%, 24%, 16%, 8%). Taper relief only reduces tax on the part of the gift above the nil-rate band. Gifts into trusts, gifts with reservation, business and agricultural property and the details of your estate can change the answer. This is information, not financial or tax advice.
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