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HMRC is punishing 1,300 people after gifting friends and family money, figures show. The proportion of IHT paid on gifts increased over 153% since 2011 to £256m in the 2020-21 tax year.

That is according to the latest data from HMRC. The number of those paying IHT on gifts also increased over 120% since 2011, with 1300 paying the tax in 2020/21, according to the data shared with Continuum in a Freedom of Information request.

In the 2011-12 tax year an average of £171,186 of IHT was paid by estates who paid IHT on gifts. For the 2020-21 tax year this increased to £196,923.

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Ben Alcock, Chartered Financial Planner at Continuum, said: “The cost of living crisis continues to hit many clients’ famil

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