Answers · UK 2025/26
How much can I give as a tax-free gift in the UK?
You can give £3,000/year IHT-free (annual exemption), plus unlimited £250 small gifts to different people, wedding gifts (£5,000 to child, £2,500 grandchild, £1,000 other) and unlimited «normal expenditure out of income». Larger gifts exit estate after 7 years.
Full answer
UK gift allowances for IHT purposes 2025/26: Annual exemption £3,000/year (can carry forward 1 year unused = £6,000 max). Small gifts up to £250 per recipient, unlimited people. Wedding/civil partnership gifts: £5,000 to child, £2,500 to grandchild/great-grandchild, £1,000 to anyone else. Charity and political party donations: unlimited, no IHT. «Normal expenditure out of income» exemption — regular gifts from surplus income that don't reduce your standard of living. Spouse/civil partner gifts: unlimited (full spouse exemption). Larger one-off gifts above these limits are «Potentially Exempt Transfers» (PETs) — IHT-free if you survive 7 years; taper relief reduces tax 0-80% between years 3-7. Keep records of all gifts for executors.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.