The amount paid in UK inheritance tax on gifts received less than seven years before death more than doubled in the ten years to 2020-21 – from £101m to £256m, according to a report. Laura Hayward of tax experts Evelyn Partners, told moneymarketing.co.uk that represented a rise from 590 to 1300 in the number of households hit, or perhaps caught out. “That suggests some very significant tax bills are being delivered to unprepared beneficiaries after their generous relative has died, and this might be another reason for those contemplating making big lifetime gifts to start the seven-year clock ticking sooner rather than later. Even if the gifter were to pass away within seven years, there is a chance the IHT bill could be reduced by taper relief.”
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