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How much can I give away each year without creating Inheritance Tax implications?

You can give a total of £3,000 without any Inheritance Tax implications, in addition £5,000 if it is a wedding present to a child, £2,500 to a grandchild getting married or £1,000 to any other person on their marriage.

If you did not use the £3,000 exemption the previous year it can be aggregated with the current year. This only applies for one year so £6,000 is the maximum.

Apart from this you may give as many small gifts as you wish, provided they do not total more than £250 per person

Also, you may give larger sums than all those mentioned above but you would need to survive 7 years from the date of the gift for it not to be included in the calculation of your estate.

Another useful exemption is 'normal expenditure out of income'. Lifetime gifts are exempt if they are part of the donor's normal expenditure, made out of income and the donor is left with sufficient income to maintain his or her usual standard of living.

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