Can gifts reduce Inheritance Tax?

Gifts can reduce UK Inheritance Tax through annual exemptions, small and wedding gift allowances, the seven-year rule, and surplus income gifts. For personalised advice and to maximise savings, consult an experienced Inheritance tax advisor. Gifts above thresholds are exempt from IHT if you live seven years after making them, known as the “seven-year rule.” Regular gifts from surplus income may also qualify for exemption if they do not affect your standard of living. For tailored planning, consult an experienced Inheritance tax advisor to avoid costly mistakes and maximise savings.