UK Gifting Rules: The £3,000 Allowance and Gifting Property

In short: Each person can give away £3,000 a year free of inheritance tax, and carry forward one unused year. There are also small gifts of up to £250 per person, wedding gifts (up to £5,000 to a child), and regular gifts from surplus income. Larger gifts become free of inheritance tax if you survive seven years, with taper relief reducing the tax on gifts made 3 to 7 years before death. Gifting property can trigger capital gains tax, and if you keep living in it rent-free, the gift may be ignored for inheritance tax. Take advice before gifting a home.