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HMRC has billed 14,000 households after unsuccessful attempts to reduce their estates through lifetime gifts. Inheritance tax demands have been sent to over 10,000 households in the UK - after a benefactor has passed away before the seven-year rule period ended.

HMRC data shows that 14,030 gifts became subject to inheritance tax during the 2022-23 financial year. Deaths occurring between three and seven years after gifting trigger reduced tax rates ranging from eight to 32 per cent.

Michelle Holgate from investment firm RBC Brewin Dolphin, warned: "Strategic gifting was once seen as a tactic of the super-affluent, but has now gone mainstream."

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Michelle said: "We're getting inquiries in particu

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