Can I give away money or property during my lifetime to reduce Inheritance Tax?

You can give away money or assets during your lifetime, but the Inheritance Tax consequences depend on the type, value and timing of the gift.

Certain gifts can be made using annual or specific exemptions. Regular gifts made from surplus income may also be exempt if the relevant conditions are satisfied and you can maintain your normal standard of living.

Larger gifts are commonly subject to the seven-year rule. If you survive for seven years after making the gift, it will generally fall outside your estate for Inheritance Tax purposes. If you die sooner, some or all of its value may still be considered.

You must genuinely give up the asset. For example, giving your home to your children while continuing to live there rent-free can be treated as a gift with reservation and remain within your estate. Records of all significant gifts should be retained.