02 March 2021 Emily Grosvenor-Taylor

Gift of a lifetime

Emily Grosvenor-Taylor assesses the state of lifetime gifts and failed potentially exempt transfers in the UK

Key points

What is the issue?

Her Majesty’s Revenue and Customs (HMRC) has recently released figures that show inheritance tax (IHT) payable as a result of failed lifetime gifts has increased year-on-year between 2015/16 and 2017/18 to GBP488 million.

What does this mean for me?

To some practitioners, this figure may not come as a great surprise, given the complexities of the IHT regime and an increasing number of IHT returns being investigated by HMRC, particularly for high-value estates.

What can I take away?

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