You have an annual £3,500 ‘gift allowance’ that is free of Inheritance Tax (IHT). Meaning cash gifts of up to £3,000 can be given tax-free, remember to do this by the 5 April 2019.
If you forget to utilise the annual gift allowance don’t worry you can carry over leftover allowance. If you don’t gift anything this tax year (2017-18) you can carry the £3,000 over to the next (2018-19). Meaning you can gift a total of £6,000.
Gifts that exceed the threshold
If you give an individual gift that exceeds the threshold, they may not necessarily be charged IHT. IHT will not apply if you live on for 7 years following the gift.