Richard Curtis outlines various inheritance tax reliefs, etc., for gifts.
Although inheritance tax (IHT) can arise on some lifetime gifts or ‘transfers of value’, the main concern for most is its impact on the estate at death. Gifts made in the seven years before death will also be treated (to some extent) as part of the estate on death, but before that they are likely to be a potentially exempt transfer (PET) and not part of the estate.
While having the required effect of reducing future IHT liability, the gift may result in an immediate capital gains tax liability because this applies to disposals, not just sales. If this is an issue, gifts into trust may be a solution, but professional advice will normally be required on this because the order of gifts to individuals and trusts can affect future liabilities. However, as well as charitable donations, some gifts are not taken into account at all and are exempt
