What, if any, taxes apply if an individual makes lifetime gifts?
There is no gift tax in the UK.
Gifts of cash made between individuals give rise to no immediate tax consequences. Gifts of other assets may be liable to CGT if standing at a gain.
Gifts into trust (other than of excluded property) are liable to IHT as ‘immediately chargeable transfers’ at a rate of 20 per cent, to the extent that they exceed the available nil-rate band of the individual (a maximum of £325,000 in tax year 2020-2021).
However, if an individual dies within seven years of making a gift (including one into trust) then, unless the gift is subject to an exemption or relief, IHT or additional IHT may be payable in certain circumstances.
England & Wales Guide
The England & Wales guide answers the principal questions for Private Clients relating to the law in this jurisdiction.
