Value of cash gifts increases by 40% in past five years

The value of cash gifts given away by people in the UK rose to £2.1bn in 2020-21 marking a 40% increase from £1.5bn in 2016-17 according to data from TWM Solicitors a private wealth and family law firm. Since 2016 the value of cash gifts has risen at an average of 8% a year.

Caroline Foulger partner and head of private client at TWM Solicitors said: ‘Individuals should consider gifting money to their loved ones earlier in life. We often find that the kind of affluent individual that is going to be caught by IHT out of understandable caution keeps far too much money in their estate retaining far more money than they could reasonably need. That leaves their heirs with a far bigger IHT bill.’

She warned that it is important not to make decisions hastily about gifting without careful planning...