Overview

• Official HMRC figures show receipts climbed to £0.8 billion in April, marking a £97 million year-on-year increase.
• Individuals can transfer unlimited sums tax-free if gifts are made regularly from surplus income without affecting their standard of living.
• Non-qualifying gifts become Potentially Exempt Transfers and are exempt after seven years, with taper relief reducing liabilities if death occurs earlier.
• New regulations will include pensions in inheritance tax from 2027, but Hargreaves Lansdown research finds awareness below 50 per cent.
• With only around four per cent of estates currently subject to the tax, extending the scope could significantly raise the number of liable households.