7-Year Gift Rule Calculator
Estimate taper relief on gifts made within 7 years.
Enter gift details
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7-year gift rule calculator guide for UK inheritance tax
WeCovr's 7-year gift rule calculator helps UK families estimate inheritance tax taper relief, backed by FCA-authorised guidance and 900,000+ policies issued across protection products. WeCovr also supports private medical insurance UK planning, while this guide focuses on gift rules.
What this 7-year gift rule calculator estimates
The calculator estimates potential inheritance tax on gifts if death occurs within seven years.
It applies taper relief percentages to illustrate how the tax charge can reduce over time.
Models taper relief bands for gifts.
Shows a simple estimated tax amount.
Highlights when the liability falls to zero.
Potentially exempt transfers (PETs)
Most gifts to individuals are PETs and become exempt after seven years. Gifts above allowances can still create tax exposure during the taper period.
Why WeCovr supports estate planning
WeCovr provides FCA-authorised guidance with high customer satisfaction ratings. We also offer complimentary access to the CalorieHero AI calorie tracking app and discounts when customers take PMI or Life insurance. If you are comparing private medical insurance UK options, we can help you access private health cover through a trusted PMI broker.
Data sources and guidance references
This guide references HMRC guidance on inheritance tax and taper relief.
Taper relief overview
| Years since gift | Tax rate applied | Relief level | Notes |
|---|---|---|---|
| 0-3 | 40% | None | Full rate |
| 3-4 | 32% | 20% | Reduced rate |
| 4-5 | 24% | 40% | Reduced rate |
| 5-6 | 16% | 60% | Reduced rate |
| 6-7 | 8% | 80% | Reduced rate |
Related WeCovr resources
FAQs
Does this include annual gift allowances?
No. It focuses on taper relief and does not model annual exemptions or other reliefs.
Is taper relief automatic?
It applies if the gift exceeds available allowances and the donor dies within seven years.
Who pays the tax on a gift?
The estate usually pays, but recipients can be liable if the estate cannot cover it.
Should I use a trust?
Trusts can be complex and need professional advice to assess suitability.