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Peter Daniel
Partner - Head of Private Wealth
Private Wealth /
Lifetime Giving FAQs
Making gifts during your lifetime is an efficient way to reduce the value of your estate for inheritance tax purposes as well as providing benefits for your family. Managing the succession of personal and family assets is often at the forefront for many individuals’ minds and thus lifetime giving is very much the cornerstone of any successful tax and estate plan.
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What Are Lifetime Gifts?
Lifetime giving can be fraught with difficulties and it is essential to consider the options available to the donor. When making lifetime gifts, it is important to take into account the personal circumstances of both the donor and donee. A gift should not be made to the detriment of the donor and likewise, the exact nature of the gift and its tax implications for all parties should be considered carefully.
Is there a UK gift tax on lifetime gifts?
There is no separate lifetime gift tax in the UK. Depending on the circumstances, lifetime gifts can create an inheritance tax liability either at the time or when the person making the gift dies. For an example of how lifetime gifts can have inheritance tax implications, and how these rules compare to gifts made in the US, please see our articles on normal expenditure out of income and US/UK giving.
Gifting Money To Family: How much can you gift tax-free in the UK to children, family members, or friends?
An individual can gift up to £325,000 in a seven-year period without having to worry about inheritance tax on their death. Even for outright gifts in excess of this, there will be no inheritance tax to pay at the time, and if the donor survives the gift by seven years there will be no inheritance tax liability on their death. For more information on gifts to family members, please see our articles on gifting up a generation.
Gifting A House: What are the tax implications of gifting a house?
This will depend on the circumstances and whether you intend to live in the house, but there could typically be inheritance tax and capital gains tax consequences. For more information, please see our articles on how do I help my children buy a house, can I gift my holiday home or rental property to my children, and can I gift my home to my children and still live in it.
Gifting Businesses: How can I gift a business or business assets?
Business assets can be gifted like anything else, but there are specific tax rules that should be considered. For more information, please see our article on how to efficiently gift business assets.
Gifts Out Of Income: Is there an effective way to make gifts out of income?
The rules for “normal expenditure out of income” mean such gifts can be very effective from an inheritance tax perspective. For more information, please see our article on normal expenditure out of income.
Transferring property into a trust: What are the benefits of transferring property into a trust in the UK?
This will depend on the circumstances and what you are trying to achieve, but trusts can offer a degree of control and some tax benefits. For examples of where trusts might be a useful way to provide for family members, please see our articles on [trusts and school fees], and the exposure of women to inheritance tax.
How should I approach charitable giving?
There are numerous benefits of charitable giving and it should be approached carefully to ensure that any such benefits are optimised. Please see our articles How should I approach charitable giving? and The Giving Pledge, and our podcast The Fine Art of Probate: Gifts and legacies
Can attorneys make gifts using a Lasting Power of Attorney?
Attorneys have limited powers to make gifts under a Lasting Power of Attorney. Please see our article Gifts and Lasting Powers of Attorney (LPAs)
What are the benefits of gifting art?
There are tax benefits of gifting art during your lifetime using the Cultural Gift Scheme or on death by way of the Acceptance in Lieu Scheme. Please see our articles Gifting in the Arts (CGS v AIL) and [CB Probate: Acceptance in Lieu]
How do I make gifts to a disabled child and/or a vulnerable person?
Making a gift to a disabled or vulnerable person must be considered carefully for their own benefit as well as for tax purposes. Please see our article gifting to vulnerable individuals.
What do I need to think about when making a gift with overseas elements?
Such gifts can be more complex, for instance, if the recipient or the assets are based outside the UK, and therefore need to be considered carefully. Please see our articles on foreign gifts and US/UK giving.
Peter DanielPartner - Head of Private Wealth
+44 20 7468 7351+44 7879 842645peter.daniel@collyerbristow.com
Caroline HollisChartered Legal Executive (FCILEx)
Charles AvensPartner - Head of Immigration
+44 20 7468 7234 +44 7778 309 594charles.avens@collyerbristow.com
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We have prepared a handbook to answer the most pressing and common lifetime giving questions and issues including; giving property to the next generation, gifts to vulnerable individuals, how best to fulfil an individual’s philanthropic ambitions, foreign gifts and the tax benefits associated with gifts of art.
Lifetime Giving | Trusts and School FeesA guide to tax efficient arrangements - A guide to tax efficient arrangements
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Need some more information? Make an enquiry below
Lifetime Giving FAQs key contacts
- peter.daniel@collyerbristow.comPeter
DanielPartner - Head of Private Wealth
Talk to Peter about UK trusts, tax & estate planning, International trusts, tax & estate planning, Private wealth, Probate and US/UK Tax & estate planning
Lifetime Giving FAQs
Lifetime Giving FAQs
Making gifts during your lifetime is an efficient way to reduce the value of your estate for inheritance tax purposes as well as providing benefits for your family. Managing the succession of personal and family assets is often at the forefront for many individuals’ minds and thus lifetime giving is very much the cornerstone of any successful tax and estate plan.
Key contact
Peter Daniel
Partner - Head of Private Wealth
The Team
Our lawyers have the expertise and experience to provide you with creative, personalised solutions in a clear and understandable way.
Our Publications
Discover a wealth of invaluable guidance in the form of guides and brochures written by our expert lawyers.
Our insights
Discover the latest insights and thought leadership from our team of legal experts.
What Are Lifetime Gifts?
Lifetime giving can be fraught with difficulties and it is essential to consider the options available to the donor. When making lifetime gifts, it is important to take into account the personal circumstances of both the donor and donee. A gift should not be made to the detriment of the donor and likewise, the exact nature of the gift and its tax implications for all parties should be considered carefully.
Is there a UK gift tax on lifetime gifts?
There is no separate lifetime gift tax in the UK. Depending on the circumstances, lifetime gifts can create an inheritance tax liability either at the time or when the person making the gift dies. For an example of how lifetime gifts can have inheritance tax implications, and how these rules compare to gifts made in the US, please see our articles on normal expenditure out of income and US/UK giving.
Gifting Money To Family: How much can you gift tax-free in the UK to children, family members, or friends?
An individual can gift up to £325,000 in a seven-year period without having to worry about inheritance tax on their death. Even for outright gifts in excess of this, there will be no inheritance tax to pay at the time, and if the donor survives the gift by seven years there will be no inheritance tax liability on their death. For more information on gifts to family members, please see our articles on gifting up a generation.
Gifting A House: What are the tax implications of gifting a house?
This will depend on the circumstances and whether you intend to live in the house, but there could typically be inheritance tax and capital gains tax consequences. For more information, please see our articles on how do I help my children buy a house, can I gift my holiday home or rental property to my children, and can I gift my home to my children and still live in it.
Gifting Businesses: How can I gift a business or business assets?
Business assets can be gifted like anything else, but there are specific tax rules that should be considered. For more information, please see our article on how to efficiently gift business assets.
Gifts Out Of Income: Is there an effective way to make gifts out of income?
The rules for “normal expenditure out of income” mean such gifts can be very effective from an inheritance tax perspective. For more information, please see our article on normal expenditure out of income.
Transferring property into a trust: What are the benefits of transferring property into a trust in the UK?
This will depend on the circumstances and what you are trying to achieve, but trusts can offer a degree of control and some tax benefits. For examples of where trusts might be a useful way to provide for family members, please see our articles on [trusts and school fees], and the exposure of women to inheritance tax.
How should I approach charitable giving?
There are numerous benefits of charitable giving and it should be approached carefully to ensure that any such benefits are optimised. Please see our articles How should I approach charitable giving? and The Giving Pledge, and our podcast The Fine Art of Probate: Gifts and legacies
Can attorneys make gifts using a Lasting Power of Attorney?
Attorneys have limited powers to make gifts under a Lasting Power of Attorney. Please see our article Gifts and Lasting Powers of Attorney (LPAs)
What are the benefits of gifting art?
There are tax benefits of gifting art during your lifetime using the Cultural Gift Scheme or on death by way of the Acceptance in Lieu Scheme. Please see our articles Gifting in the Arts (CGS v AIL) and [CB Probate: Acceptance in Lieu]
How do I make gifts to a disabled child and/or a vulnerable person?
Making a gift to a disabled or vulnerable person must be considered carefully for their own benefit as well as for tax purposes. Please see our article gifting to vulnerable individuals.
What do I need to think about when making a gift with overseas elements?
Such gifts can be more complex, for instance, if the recipient or the assets are based outside the UK, and therefore need to be considered carefully. Please see our articles on foreign gifts and US/UK giving.
Peter DanielPartner - Head of Private Wealth
View Peter Daniel's profileAidan GrantSenior Associate
View Aidan Grant's profileCameron CreesAssociate
View Cameron Crees's profileCaroline HollisChartered Legal Executive (FCILEx)
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View Charles Avens's profileCharlie FowlerPartner
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View John Saner's profileNathania HallAssociate (FCILEx)
View Nathania Hall's profileRoger WoolfeConsultant
View Roger Woolfe's profileSamara DuttonPartner
View Samara Dutton's profileSuki LoftusTrust Manager
View Suki Loftus's profileTulin HamitPartner
View Tulin Hamit's profileLifetime Giving FAQs Publications
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Stay or go? UK opposition’s tax hit on non-doms likely to encourage exodusStay or go? UK opposition’s tax hit on non-doms likely to encourage exodus
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Can I make cash gifts under a power of attorney arrangement?Can I make cash gifts under a power of attorney arrangement?
Read more
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How will the Autumn Statement impact inheritance taxHow will the Autumn Statement impact inheritance tax
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The Middle Classes and the Autumn Budget Statement: Fallback, Fail-Safe, Cash-Cow, TaxpayersThe Middle Classes and the Autumn Budget Statement: Fallback, Fail-Safe, Cash-Cow, Taxpayers
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Tax Justice UK proposes wealth tax to raise £37 billionTax Justice UK proposes wealth tax to raise £37 billion
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Spring Budget Statement 2022Spring Budget Statement 2022
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Thoughts on new measures to tackle “dirty money” in the UKThoughts on new measures to tackle “dirty money” in the UK
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