The easiest way to avoid inheritance tax is by giving away gifts during your lifetime. During the course of a financial year, you can gift away assets worth £3000 and these will not be calculated as part of your estate that is subject to inheritance tax after the owner’s demise.

If you are not able to utilise the exemptions within the span of a year then these would be carried forward to the next financial year. Gifts that are worth more than £250 and given away to a number of individuals are also exempted from taxes. However, the benefit of both these conditions cannot be enjoyed if you are giving it all away to one individual.

When it comes to your children, you can give away £5000 in the form of a wedding gift. Grandparents can also give away an amount of around £2500 while others can gift an amount around £1000.

You can expect to get a reprieve from inheritance tax by giving away gifts to your respective spouses, as these are free from inheritance tax. Even donations to political parties and charities are exempted from taxes. If the gift that you give out is one out of your income and does not have an impact on your standard of living, then you can give away any amount of your own choice. But at the same time it is advisable to take the help of a tax expert in this regard in order to make sure that it conforms to the rules set by the HM Revenue & Customs.

The tax on the gift automatically declines if it was given out three to seven years prior to the demise of the estate owner. Seek professional help in this regard is necessary so that you do not subject your near and dear ones into paying lump sums as inheritance tax.