Lifetime Gifts and IHT: What the Data Shows

Around 13% of the British population had made a qualifying lifetime gift in the two years before being surveyed, and only 8% of gifters said inheritance tax rules had influenced their largest gift, according to HMRC-commissioned research (HMRC Research Report 535, published January 2019, subject to change).

Lifetime gifts sit at the centre of a lot of inheritance tax conversation, yet the data show that most gifting is small in scale and rarely tax-driven. This piece pulls together the main named statistics on how many people give, how much they give, and how far the 7-year rule and gift exemptions shape behaviour. It draws on HMRC research and HMRC statistics, and sits within our Inheritance Tax Explained guide, alongside our note on the 7-year gift rule, and forms part of our wider estate planning guide. The main behavioural figures come from a 2018 survey, so they describe an earlier period; every figure carries its source and reference period, and figures are current as at July 2026 and subject to change.

The headline gift statistics

An eighth of the population, 13%, made a qualifying gift in the two years before the survey, and 27% were classed as lifetime gifters once longer-term gifts were counted (HMRC Research Report 535, published January 2019, subject to change). Gifting rose with age and wealth: 24% of those aged 70 and over had gifted in the previous two years, and 33% of those with assets of £500,000 or more, compared with 5% of those with total assets under £100,000 (HMRC Research Report 535, published January 2019, subject to change). For context, inheritance tax itself reached 4.62% of the 683,000 UK deaths in the 2022 to 2023 tax year, so most estates fall within the available tax-free bands (HMRC Inheritance Tax liabilities statistics, 2022-23, published 31 July 2025, subject to change).

Key figures at a glance

The clearest picture of lifetime gifting comes from HMRC-commissioned research, which measured how many people give, the value of what they give, and their awareness of the rules. The table below sets out each headline statistic with its source and reference period. The behavioural figures relate to survey fieldwork carried out in 2018, while the estate-level figure relates to the 2022 to 2023 tax year, so the reference periods differ by row.

Sources: HMRC Research Report 535 (NatCen and IFS, published January 2019) and HMRC Inheritance Tax liabilities statistics (2022-23, published 31 July 2025). Figures as at July 2026 and subject to change. The research report is a survey from 2018 and may not reflect current behaviour.

Awareness of the rules is limited

Awareness of inheritance tax rules among gifters was low. Fewer than half, 45%, of gifters reported being aware of IHT rules or exemptions when they gave their largest gift, and only 25% could be classed as having a working knowledge of those rules on the study's measures (HMRC Research Report 535, published January 2019, subject to change). Tax rarely drove the decision: of the gifters who were aware, 18% said the rules influenced their largest gift, equal to about 8% of all gifters (HMRC Research Report 535, published January 2019, subject to change).

The research also identified a small group more likely to be affected by inheritance tax, estimated at around 3% of the general population and 9% of those aged 60 and over (HMRC Research Report 535, published January 2019, subject to change). This group gifted more often, but even among them, passing on assets was not usually the primary reason for giving. Many people who give simply want to help family, and the data suggest the tax rules are a secondary consideration for most.

Source: HMRC Research Report 535 (NatCen and IFS), published January 2019. Figures as at July 2026 and subject to change; the underlying survey was carried out in 2018.

The gift rules behind the data

The behaviour above is shaped by a set of gift rules that determine when a lifetime gift can be counted in an estate. Broadly, no inheritance tax is due on a gift if the person lives for seven years after making it, unless it is a gift into certain trusts (gov.uk, as at July 2026, subject to change). Gifts made within seven years of death can be added back, with taper relief reducing the tax on the portion above the tax-free threshold where death falls between three and seven years after the gift.

Several exemptions can put gifts outside the calculation entirely. Each person can give away up to £3,000 in total each tax year under the annual exemption, make small gifts of up to £250 per person, and give wedding or civil partnership gifts of up to £5,000 to a child, £2,500 to a grandchild or great-grandchild and £1,000 to anyone else (gov.uk, as at July 2026, subject to change). Regular gifts made out of surplus income that do not affect the giver's standard of living can also be exempt (gov.uk, as at July 2026, subject to change).

Source: gov.uk Inheritance Tax: rules on giving gifts. The taper percentages are the tax rates gov.uk lists for the part of a gift above the £325,000 nil-rate band. Figures as at July 2026 and subject to change. The nil-rate band of £325,000 is frozen to the end of the 2030-31 tax year and the residence nil-rate band of up to £175,000 is frozen to the end of the 2030-31 tax year (5 April 2031), with the standard rate at 40% (gov.uk, as at July 2026, subject to change).

Read together, the data suggest that lifetime gifting is widespread but mostly small and family-focused, and that the inheritance tax rules are a secondary consideration for the large majority of givers (HMRC Research Report 535, published January 2019, subject to change). The gap between the exemptions that exist and the low level of awareness recorded suggests some people may not be making full use of allowances such as the annual exemption or regular gifts out of income (gov.uk, as at July 2026, subject to change). These are observations about published research, not predictions, and the survey dates from 2018, so behaviour may have shifted since. Any individual's position depends on their own assets, income, and beneficiaries.

For anyone whose estate may approach the thresholds, many people choose to review their gifting periodically and, where the figures are close, to discuss it with a qualified professional. General reading such as our note on the 7-year gift rule can help frame those conversations, but it is not a substitute for advice on individual circumstances.

Sources and methodology

Every statistic on this page comes from a named source and has been checked against the published figures. The behavioural statistics come from HMRC-commissioned research conducted in 2018 and published in 2019, based on a representative sample of 2,090 adults and 947 gifters in Great Britain. This is a clearly attributed secondary research source rather than a live statistical release, and it describes an earlier period. The estate-level figure comes from HMRC statistics for the 2022 to 2023 tax year, and the gift rules come from current gov.uk guidance.

• HMRC Research Report 535, Lifetime Gifting: Reliefs, Exemptions, and Behaviours (NatCen Social Research and the Institute for Fiscal Studies, dated January 2019, published May 2019): incidence, value and frequency of gifts, recipients, and awareness of IHT rules. gov.uk (PDF)
• HMRC Inheritance Tax liabilities statistics (published 31 July 2025), tax year 2022-23: share of UK deaths charged inheritance tax. gov.uk
• gov.uk Inheritance Tax: rules on giving gifts: the 7-year rule, taper relief, the annual exemption, small gifts, wedding gifts and regular gifts out of income. gov.uk
• gov.uk Inheritance Tax: the £325,000 nil-rate band frozen to the end of 2030-31, up to £175,000 residence nil-rate band frozen to the end of 2030-31 (5 April 2031), and the 40% rate. gov.uk

All figures are current as at July 2026 and are subject to change. Statistics are quoted as published; nothing on this page has been estimated, extrapolated or rounded beyond the source. The main behavioural survey dates from 2018 and may not reflect current behaviour.

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