In this episode of Listen Without Prejudice, Nicholas Barlow, Head of the Private Client team at Bishop & Sewell, is joined by Luke Jenkins, Associate in the team, to explore the fundamentals of lifetime gifting and the key inheritance tax allowances and reliefs available to individuals and families.

The conversation provides a practical refresher on commonly used exemptions, from the annual £3,000 allowance and small gifts exemption, to marriage gifts and the often-overlooked surplus income exemption. Luke explains how surplus income gifting works in practice, why it must come from income rather than capital, and why consistency and documentation are critical if gifts are to be effective for inheritance tax purposes.

Nicholas and Luke also discuss larger capital gifts, the seven-year rule, and how taper relief can reduce inheritance tax exposure even if the donor does not survive the full seven years. They consider the benefits of gifting appreciating assets during lifetime, as well as the potential capital gains tax implications that need to be factored in.

Whether you are considering making lifetime gifts, advising family members, or planning your estate more broadly, this episode offers clear, practical guidance on how to use available allowances sensibly and responsibly.

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Chapter Markers

(01:00) – The annual £3,000 exemption and small gifts allowance

(05:00) – Capital gifts, the seven-year rule, and taper relief

(07:30) – Why tax planning must be holistic

(09:20) – Record keeping and the role of Zenplans

(11:30) – Final thoughts: planning ahead and working with advisers

Useful Links

Connect with Nicholas Barlow on LinkedIn

Reach out to Luke Jenkins on LinkedIn

Visit the Bishop & Sewell Website