IHT Gift Exemptions: The Statistics

Most gifts are made without any thought of inheritance tax, and the official data reflects that. Government research suggests only a small share of adults make sizeable gifts in a given period, that fewer than half of those givers know the tax rules when they act, and that the headline exemptions have not moved for decades.

This page pulls together the main published statistics on inheritance tax (IHT) gift exemptions in the UK, from HM Revenue and Customs research, HMRC statistics, and the former Office of Tax Simplification. IHT is a UK-wide tax, so the exemptions described here apply across England, Wales, Scotland and Northern Ireland, although succession law and probate procedures differ between the nations. Every figure is sourced at the point of use. Current allowance amounts are as at July 2026 and are subject to change. For the wider context, see our Inheritance Tax Explained guide.

Key figures at a glance

The table below gathers the headline statistics on gift exemptions and how they surface in estate data. Usage and awareness figures come from HMRC commissioned research from 2019; estate-level figures are HMRC statistics for the 2022 to 2023 tax year, the latest available; and the allowance amounts are current as at July 2026. Each row links to its source.

Statistic	Figure	Reference period	Source
Annual gift exemption	£3,000, unchanged since 1981	1981 to present	OTS, July 2019; gov.uk
Small gifts exemption	£250 per person, set since 1980	1980 to present	OTS, July 2019; gov.uk
GB adults who made a qualifying gift	About an eighth (13%)	2 years to 2018 to 2019	HMRC Research Report 535, May 2019
Share identified as lifetime gifters	Over a quarter (27%)	Lifetime (incl. single gifts of £1,000+ made more than two years before interview)	HMRC Research Report 535, May 2019
Gifters aware of IHT rules at their largest gift	Fewer than half (45%)	2 years to 2018 to 2019	HMRC Research Report 535, May 2019
Taxpaying IHT estates	31,500 (up 3,700, or 13%)	2022 to 2023	HMRC IHT liabilities statistics, 2025
IHT liabilities created	£6.70 billion	2022 to 2023	HMRC IHT liabilities statistics, 2025
Spouse and civil partner exemption reported	£5.98 billion	2022 to 2023	HMRC IHT liabilities statistics, 2025
Charity exempted transfers	£1.92 billion	2022 to 2023	HMRC IHT liabilities statistics, 2025

Reference periods are as published by each source. Allowance amounts are as at July 2026 and are subject to change.

How well are the exemptions understood?

Awareness of the tax rules at the moment of giving is limited. In the same HMRC research, fewer than half of gifters (45%) said they were aware of IHT rules or exemptions when they made their largest gift, and of that group only 18% said the rules influenced the gift, equivalent to around 8% of all gifters (HMRC Research Report 535, May 2019). In other words, most gifting appears driven by family need rather than tax planning.

That gap between the rules and everyday behaviour is one reason many people find it worth discussing gift planning with a qualified professional before making large transfers. The exemptions can interact in ways that are easy to miss, and the amount that falls outside an exemption may still count towards the estate under the seven-year rule. Our guide to the 7-year gift rule sets out how that timing works, and taper relief only applies where gifts in the seven years before death exceed the £325,000 threshold (gov.uk, as at July 2026, subject to change).

Exemptions in the estate data

When estates are settled, exemptions rather than gifts account for most of the value that escapes IHT. HMRC statistics for the 2022 to 2023 tax year show £5.98 billion reported as transferred to surviving spouses and civil partners, and £1.92 billion in exempted transfers to charities, against IHT liabilities of £6.70 billion created for that year (HMRC IHT liabilities statistics, published 2025).

The number of estates paying the tax is also rising. There were 31,500 taxpaying IHT estates in 2022 to 2023, an increase of 3,700, or 13%, on the previous year (HMRC IHT liabilities statistics, 2025). With the nil-rate band held at £325,000 and frozen to the end of the 2030-31 tax year (5 April 2031), the number of estates within the net is generally expected to keep growing, which is part of why lifetime gifting draws attention (gov.uk, as at July 2026, subject to change).

The allowances that have stood still

The gift exemptions are notable for how long they have been fixed. The Office of Tax Simplification reported that the £3,000 annual exemption had been frozen at that level since 1981, and the £250 small gifts exemption set at £250 since 1980 (Office of Tax Simplification, Inheritance Tax Review, second report, July 2019). Both amounts remain the same today (gov.uk, as at July 2026, subject to change).

Exemption	Amount	Unchanged since
Annual exemption (per tax year, one year carry-forward)	£3,000	1981
Small gifts (per recipient, per tax year)	£250	1980
Wedding or civil partnership gift to a child	£5,000	See gov.uk
Wedding gift to a grandchild or great-grandchild	£2,500	See gov.uk
Wedding gift to anyone else	£1,000	See gov.uk

Amounts and history from OTS, July 2019 and gov.uk/inheritance-tax/gifts, as at July 2026, subject to change. The normal expenditure out of income exemption has no fixed monetary limit and depends on regular gifts from surplus income.

What the numbers mean

Taken together, the data points to a quiet mismatch. Sizeable gifting is a minority activity, awareness of the tax rules at the time of giving is limited, and the exemptions that do exist have not risen with prices for around four decades. Meanwhile the number of taxpaying estates is climbing. Read alongside a frozen £325,000 nil-rate band, that combination may explain why interest in lifetime giving tends to rise even though relatively few people act on it. Source: gov.uk, as at July 2026, subject to change.

A few points of caution when reading these figures. The usage and awareness numbers come from a 2019 survey of the British population and reflect behaviour in the two years before, so they may not capture more recent patterns. The estate figures cover deaths in 2022 to 2023 and, as HMRC notes, were affected by a change in reporting requirements for excepted estates from January 2022, which can distort year-on-year comparisons of exempted transfers (HMRC IHT liabilities statistics, 2025). None of this is a substitute for advice on an individual estate.

In our experience, the practical takeaway many people draw is simply that the exemptions are modest and easy to overlook, so keeping a clear record of gifts and reviewing plans periodically can help. Whether any particular gift is worthwhile depends on your circumstances, and it can be worth discussing with a suitably qualified professional. For the fuller picture, our estate planning guide sets out how gifts sit alongside wills, trusts and other tools.

Sources and methodology

Every statistic on this page comes from a named official source and was checked against the live publication. Usage and awareness figures are from HMRC commissioned qualitative and survey research; estate-level figures are HMRC official statistics; the history of the allowances is from the former Office of Tax Simplification. Where a current amount is quoted, it was confirmed on gov.uk as at July 2026 and is subject to change.

HMRC Research Report 535, "Lifetime Gifting: Reliefs, Exemptions and Behaviours" (NatCen Social Research for HMRC, published May 2019). Basis for the 13%, 27% and 45% figures across the British population; the 13% and 45% relate to gifting in the two years before interview, while the 27% is the wider lifetime-gifter measure that also includes single gifts of £1,000 or more made more than two years before interview. View report.
HMRC Inheritance Tax liabilities statistics: commentary (published 2025, tax year 2022 to 2023). Basis for the 31,500 taxpaying estates, £6.70 billion liabilities, £5.98 billion spouse and civil partner exemption, and £1.92 billion charity exemption. View commentary.
Office of Tax Simplification, Inheritance Tax Review, second report (July 2019). Basis for the annual exemption frozen at £3,000 since 1981 and the £250 small gifts exemption since 1980. View report.
gov.uk, "How Inheritance Tax works" and "Rules on giving gifts" (as at July 2026, subject to change). Basis for the current allowance amounts, the seven-year rule and the £325,000 threshold. View gift rules and Inheritance Tax overview.

Frequently asked questions

How much can you give away tax free each year?

The annual gift exemption lets you give away up to £3,000 of gifts in each tax year without them counting towards your estate for inheritance tax, and any unused amount can be carried forward one year only. Separate allowances cover small gifts of up to £250 per person and wedding gifts (gov.uk, as at July 2026, subject to change). The right approach depends on your circumstances.

How many people actually use gift exemptions?

Sizeable gifting is a minority activity. HMRC commissioned research found about an eighth (13%) of the British population had made a qualifying gift in the two years before interview, rising to over a quarter (27%) identified as lifetime gifters once single gifts of £1,000 or more made more than two years before interview are also included (HMRC Research Report 535, May 2019). Behaviour may have shifted since the research was carried out.

Do most people know the inheritance tax gift rules when they give?

Often not. In the same HMRC research, fewer than half of gifters (45%) said they were aware of IHT rules or exemptions when making their largest gift, and only around 8% of all gifters said the rules actually influenced the gift (HMRC Research Report 535, May 2019). This suggests most gifting is driven by family need rather than tax planning.

Why has the £3,000 annual exemption not gone up?

The £3,000 annual exemption has been frozen since 1981, and the £250 small gifts exemption since 1980, according to the Office of Tax Simplification (OTS, Inheritance Tax Review, July 2019). Successive governments have chosen not to raise them, and both amounts remain the same today (gov.uk, as at July 2026, subject to change). Whether that changes is a matter for future policy.

How many estates actually pay inheritance tax?

A relatively small share. HMRC statistics recorded 31,500 taxpaying IHT estates in the 2022 to 2023 tax year, an increase of 3,700, or 13%, on the year before (HMRC IHT liabilities statistics, 2025). With thresholds frozen to the end of 2030-31, the number is generally expected to keep rising (gov.uk, as at July 2026, subject to change).

Do gift exemptions work the same across the UK?

Yes. Inheritance tax is a UK-wide tax, so the gift exemptions apply the same way in England, Wales, Scotland and Northern Ireland (gov.uk, as at July 2026, subject to change). What differs between the nations is succession law and the process for administering an estate, for example confirmation in Scotland rather than a grant of probate. Cross-border estates can be worth taking advice on.

About Fairchild Oldfield

The Fairchild Oldfield team brings together estate planning, tax, independent financial advice and client care, working with families across England and Wales.

Fairchild Oldfield are estate planning specialists and will writers, not a firm of solicitors. This article is general information based on practical experience, not legal, tax or financial advice.

Important: This article is general information only and is not legal, tax or financial advice. Reading it does not create a professional relationship. Inheritance tax is a UK-wide tax, but succession law and probate procedures differ between England and Wales, Scotland and Northern Ireland. Statistics are drawn from the named official sources cited above and reflect the reference periods stated. Allowance figures and rules are current as at July 2026 and are subject to change. Before acting, many people choose to seek advice from a suitably qualified professional, such as a solicitor, a STEP practitioner, an accountant, or an FCA-authorised financial adviser, who can consider your individual circumstances.

Inheritance Tax Gift Exemptions: What the Statistics Show