Telmar Estate Planning

Gifting & Exemptions

Reduce Inheritance Tax. Support the people you love.

Effective gifting and the use of available exemptions can significantly reduce the value of your estate and your Inheritance Tax liability. Our specialist advisers help you make the most of every opportunity while staying fully compliant with the rules.

Grandparents gifting to grandchildren as part of an IHT plan
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The Power of Gifting

Reduce IHT Liability

Gifts made during your lifetime can reduce the value of your estate and your Inheritance Tax bill.

Support Loved Ones

Help family and friends when they need it most while potentially reducing tax in the future.

Be Tax Efficient

Use annual exemptions and reliefs to your advantage and keep more of your wealth.

Plan With Confidence

We help you navigate the rules and plan effectively for long-term peace of mind.

Stay Compliant

Our advice ensures your gifts are made correctly and in line with HMRC regulations.

How We Help You Maximise Gifting & Exemptions

  • Identify all available exemptions and reliefs
  • Create a tailored gifting strategy for your circumstances
  • Ensure gifts are structured correctly and documented
  • Plan for the future while meeting your personal goals
  • Review and adapt your plan as your life changes
Adviser helping a client plan tax-efficient gifts

Key Exemptions You Can Use

The UK tax system provides a number of exemptions and reliefs that can help reduce your IHT liability.

Annual Exemption

Give away up to £3,000 each tax year, plus any unused amount from the previous year.

Small Gifts Exemption

Give up to £250 per person per tax year to as many people as you like.

Wedding Gifts Exemption

Give certain amounts tax-free to support a family member's wedding or civil partnership.

Normal Expenditure Out of Income

Regular gifts from your income are exempt if they don't affect your standard of living.

Gifts to Individuals

Gifts to any individual are exempt after seven years from the date of the gift.

Gifts to Charity

Gifts to registered UK charities are 100% exempt from Inheritance Tax.

Potentially Exempt Transfers

Larger gifts that fall outside your estate provided you survive seven years.

Business & Agricultural Relief

Qualifying business or agricultural assets may be eligible for 50% or 100% relief.

Discuss your gifting plan

Expert Guidance

Inheritance Tax Gifting Rules and Exemptions

Annual and small gift exemptions

Each person can give away £3,000 a year free of inheritance tax under the annual exemption, and carry forward one unused year, giving £6,000. Unlimited small gifts of up to £250 per recipient are also exempt, provided the same person has not received the annual exemption. Wedding gifts are exempt up to £5,000 from a parent, £2,500 from a grandparent and £1,000 from anyone else. Gifts between spouses and civil partners who are both UK domiciled or long-term resident are completely exempt, as are gifts to UK charities and qualifying political parties, regardless of value or timing.

Gifts from surplus income

Regular gifts made from surplus income are immediately exempt, with no seven-year wait and no upper limit, provided they form a regular pattern and do not reduce your standard of living. This exemption is one of the most valuable but least understood reliefs. Keeping clear records of income, expenditure and gifts is essential, as executors must evidence the pattern to HMRC. Typical examples include regular payments into a grandchild's savings, school fees or life insurance premiums. Used consistently over many years, this exemption can move substantial wealth outside your estate without any tax charge.

The seven-year rule and taper relief

Larger gifts are potentially exempt transfers. They fall outside your estate if you survive seven years. If death occurs between three and seven years after the gift, taper relief reduces the tax on any amount above the nil-rate band. Gifts within seven years also use up the nil-rate band first. Telmar helps clients plan gifts and record them correctly. Taper relief only reduces the tax on the gift itself, not the estate. Gifting earlier in life, and keeping accurate records, ensures your family can claim every exemption available and avoid unexpected inheritance tax bills.

How We Work

Our Proven Approach

1

Understand Your Situation

We get to know you and your family to understand your goals and circumstances.

2

Review Exemptions & Reliefs

We identify the exemptions and reliefs you can use now.

3

Build Your Gifting Plan

We create a tailored plan to reduce your IHT liability.

4

Implement With Care

We help you make gifts correctly and keep clear records.

5

Review & Adapt

We review your plan regularly to ensure it remains effective.

Get Expert Gifting & IHT Advice

Speak to our inheritance tax specialists today and discover how smart gifting and exemptions can protect your wealth and support your loved ones.

  • 01329 550190
  • admin@telmarestateplanning.co.uk
  • 9 Pier Street, Lee-on-the-Solent, Hampshire, PO13 9LD

Frequently Asked Questions

Your Questions, Answered

Gifting is giving away assets during your lifetime to reduce the value of your estate for IHT.
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Ready to Protect Your Future?

Book a consultation today and take the first step towards peace of mind for you and your family.

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