Allowances and exemptions
You can give away up to £3,000 per year without any Inheritance Tax consequences. In addition, if you did not make any gifts in the previous tax year, then you could carry forward the previous year’s allowance and combine it with the current year’s allowance, meaning that you could make a gift of £6,000 in any one tax year without any IHT falling due. You can however only carry forward one year’s allowance.
Therefore, if you made no gifts in the 2018/2019 tax year and have made no gifts in the 2019/2020 tax year, you still have until 5 April 2020 to make a gift of £6,000. For a couple, this would mean you could make a combined IHT free gift of £12,000 before 5 April 2020 and would then have the benefit of a new allowance commencing on 6 April 2020.
Separately from the annual £3,000 allowance, you can make gifts of £250 to as many individuals as you wish; however, you cannot combine the two allowances.