Do charitable donations make any impact on £3000 limit on gifts free of inheritance tax

OlManRiver

Hi,
I have a question about the limits on what you're allowed to give away without possible inheritance tax liabilities.

As I understand it:
You're allowed to make gifts each tax year of up to £3000 and there won't be any issue with inheritance tax even if you die within 7 years of making the gift.
You are also allowed to give as many £250 gifts as you want as long as they are to different people.
You are also allowed to give Christmas and birthday presents.
Please correct me if any of these are incorrect.

I have a few questions:
1) If you give £4000 to one person but you also gave £1000 to charity in the same tax year then does this make any difference?
2) Is there any limit to how much you are allowed to give as a Christmas or Birthday present. For example, can you give more than £250 as a birthday present.
3) If you give £3000 to one person, can you also still give them a birthday and/or Christmas present?

Many thanks for your help!

Keep_pedalling

First off you are allowed to give away as much you like without any issue with IHT. The only time there would be an issue is if you gave so much away the remaining estate could not pay the IHT bill.

Gifts to charities are not subject to the 7 year rule and don’t affect any of your exemptions.