Inheritance tax: 5 ways to cut your bill as thousands caught in net
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The same would apply if someone ‘gave away’ their home but continued to live in it rent-free. KEEP A RECORD Regardless of the seven-year rule above, people can make up to £3,000 worth of
gifts in any tax year, free of IHT. They can also carry forward any unused exemption for one year, so they could give away up to £6,000 (and a married couple could give £12,000) if they
hadn’t used the previous year’s allowance. In addition, gifts worth £250 or under to any individual in a tax year are exempt. Other exemptions apply to wedding gifts – parents can give
£5,000, grandparents £2,500 and anyone else can gift up to £1,000. As people can see it can get very complicated, and HMRC may want to see records of all gifts leading up to death so it is
handy to keep the reciepts.