Overview
- Freedom of information data show 14,030 lifetime gifts became liable for inheritance tax in 2022–23 after donors died within seven years.
- The 25 largest failed gifts averaged £7.9 million after allowances, with deaths within three years triggering bills of about £3.1 million.
- A typical unsuccessful gift was £171,000 after reliefs, yielding roughly £68,400 in tax if the donor died within three years.
- For deaths three to seven years after gifting, taper relief applies at effective rates of 8% to 32%, reducing the charge below the 40% headline rate.
- Budget changes will subject private pensions to inheritance tax from April 2027 and cap agricultural and business property reliefs from April 2026, with the OBR projecting receipts to reach £14.3 billion within five years.