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Thomas, Solicitor
Category: UK Family Law
Satisfied Customers: 7602
Experience:  BA (Hons), PgDip, Practising Solicitor
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I am giving each grandchild 5,000 pounds when they buy a house.

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I am giving each grandchild 5,000 pounds when they buy a house. Is there a limit as to how much I can give each year?

Thanks for your question.

There is no legal limit as such, there are just inheritance tax implications which you may consider.

Every person has an inheritance tax annual exemption of £3000, which means that you can give away this sum each year and no part of it will ever be included in your estate when you pass away. You can also carry forward your annural exemption from the previous year if you did not use it. So, if you did not give away anything in the previous year then you can give away £6000 this year without any of it being included in your estate.

Any money above these sums are then treated as potentially exempt transfers for IHT purposes. Which means that if you die between 0-7 years from the date of the gift then a percentage only of the amount will be included within your estate for iht purposes, if you survive for 7 years or longer, then none of it will be included.

Info here:-

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Kind regards,

Customer: replied 4 years ago.

Thank you, XXXXX XXXXX great, but I am not sure about carrying forward the allowance - say I didn't give the money 3years ago, would that 3,000 still be available?


You can only carry forward from the previous year. So, if you did not give any money away in the previous year then you can carry forward's last year's £3000 to this year and give away £6000.00 in total.

The year before last year is irrelevant because you can not carry forward money from two years ago, only from one year ago.

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