More beneficiaries face charge on lifetime transfers

The number of families having to pay inheritance tax on lifetime gifts has been surging according to data obtained by Evelyn Partners in response to a freedom of information request.

The number of estates that paid IHT for this reason jumped from 590 in 2011-12 to 1 300 in 2020-21.

Meanwhile the total IHT paid on gifts also more than doubled from £101m in 2011-12 to £256m in 2020-21. The average tax charge payable by beneficiaries on lifetime gifts was £171 186 in 2011-12 and £196 923 in 2020-21.

Ian Dyall head of estate planning at Evelyn Partners said: ‘The fact that both the number and size of inheritance tax bills on lifetime gifts more than doubled between 2011-12 and 2020-21 suggests that an increasing number of families are making lifetime gifts – possibly in an effort to reduce the size of their estate as IHT...