How to help with a deposit on a home

Gifting money is a popular choice for parents and grandparents who want to help a family member buy a property whilst at the same time reducing their IHT bill.


Everyone has a yearly ‘gift’ allowance for IHT purposes. You can make gifts of up to £3,000 each year, and the good news is that this figure can be carried over to the following year if you don’t use it, meaning a maximum allowance of £6,000. So, a couple could be able to give away £12,000.

In addition, you can make small gifts of up to £250 per person per tax year, to as many people as you like. Weddings are another opportunity to hand over cash to loved ones – parents can give children £5,000 each as wedding presents, and £2,500 to grandchildren or great-grandchildren, or £1,000 to anyone else, all free of IHT.


You can give away larger sums known as ‘potentially exempt transfers’. However, you need to live for at least seven years after making the gift for it to be totally IHT-free. It’s advisable to take professional advice if you are planning to give away significant sums.