AJ Bell explains inheritance-tax limits on family cash gifts

AJ Bell warned that financial assistance to children or grandchildren may be subject to inheritance tax unless it falls within specific exemptions. The firm noted a £3,000 annual gift allowance per donor, which can be split among recipients and rolled over for one year if unused. An additional £250 small-gift exemption applies per person, but cannot be used alongside the larger allowance for the same recipient.

Wedding gifts enjoy separate limits - £5,000 for parents, £2,500 for grandparents and £1,000 for others. Martin Lewis highlighted these rules on his one outlet's podcast, while Lucie Spencer of Evelyn Partners and tax barrister Harriet Brown advised keeping written records to simplify future tax filings.