Answers · UK 2025/26

How much can I gift tax free in the UK?

You can give away £3,000 a year tax-free under the annual exemption for 2026/27, plus unlimited small gifts of £250 per person. Larger gifts are usually free of Inheritance Tax if you survive 7 years after making them.

Last updated: 1 June 2026Last reviewed: 1 June 2026How we verify

Full answer

For 2026/27 the main Inheritance Tax gifting rules let you give away £3,000 each tax year (the annual exemption), and you can carry forward one unused year, allowing up to £6,000 in a single year. On top of that you can make unlimited small gifts of up to £250 per person (to people who have not received your £3,000 exemption), and give wedding gifts of £5,000 to a child, £2,500 to a grandchild or £1,000 to anyone else. Larger gifts are "potentially exempt transfers": they fall outside your estate for IHT if you survive seven years, with taper relief reducing the tax between years three and seven. Regular gifts out of surplus income (not capital) can also be exempt if they do not affect your standard of living. Worked example: you give your daughter £50,000. If you live seven more years it is completely IHT-free; if you die within three years it is added back to your estate and may be taxed at 40% on the part above the £325,000 nil-rate band. The IHT rules apply UK-wide, including Scotland. Use the Inheritance Tax calculator to estimate the impact of gifts on your estate.