How Much Money Can I Give Away Tax-Free? UK (2026/27)
Every tax year you can give away £3,000 completely free of inheritance tax, plus £250 per person in small gifts and wedding gifts up to £5,000. Here are all the exemptions and how the 7-year rule works.
The tax-free gift exemptions (2026/27)
| Exemption | Amount | Notes |
|---|---|---|
| Annual exemption | £3,000 per tax year | Unused allowance rolls over one year only (max £6,000) |
| Small gifts | £250 per person | Cannot also receive part of the annual exemption |
| Wedding gifts | Child £5,000 · Grandchild £2,500 · Couple £2,500 · Other £1,000 | One-off per marriage |
| Spouse / civil partner | Unlimited | Fully exempt |
| UK charities | Unlimited | Fully exempt |
| Normal expenditure out of income | Unlimited | Regular gifts from surplus income that do not reduce your standard of living |
These exemptions reset every 6 April. The annual exemption is the one most people use – and the one most people forget.
The 7-year rule for bigger gifts
Gifts above your exemptions are potentially exempt transfers. If you survive 7 years after making the gift, it is completely free of inheritance tax. If you die within 7 years, the gift is added back to your estate and may use up your £325,000 nil rate band – with taper relief reducing the tax on gifts made 3–7 years before death.
This is why helping a child with a house deposit is often best started early: the clock on the 7 years starts the day you gift.
Example: giving £10,000 to a child
- First £3,000 is exempt through the annual exemption.
- The remaining £7,000 is a potentially exempt transfer.
- Survive 7 years → fully tax-free. Die within 3 years → £7,000 counts against your £325,000 threshold (and would only be taxed if your estate and gifts exceed it).
Check whether a gift is taxable
Our calculator handles the annual exemption, nil rate band and taper relief for 2026/27.
Check your gift →FAQs
How much can I give away tax-free each year?
£3,000 per tax year (rolls over one year to £6,000), plus £250 per person in small gifts, wedding gifts up to £5,000, and unlimited gifts to a spouse or UK charities.
Can I give my child money for a house deposit tax-free?
Yes, but only the first £3,000 in a tax year is automatically exempt. Above that it is a potentially exempt transfer – free of tax if you survive 7 years.
What is the 7-year rule?
Gifts within 7 years of death are added back to your estate and may use up your £325,000 nil rate band. Gifts more than 7 years before death are fully exempt.
Related: How taper relief works · 7-year rule guide · IHT Gift Calculator