Families risk inheritance tax headache by not keeping a record of gifts | Canada Life

More than half (54%) of over 55s who have given a financial gift in the last seven years have not kept any record of it, according to new research from Canada Life¹, pointing to a significant oversight in estate planning.

Just 13% reported keeping record of their generosity in a secure, backed up place (such as a formal spreadsheet, accounting software or secure notes app), whilst 15% wrote down how much they had gifted in an informal place (i.e a paper notepad, or personal note on their phone).

Upon death, HMRC requires executors to complete form IHT400 to report the full value of an estate, with form IHT403 used alongside it to disclose lifetime gifts, such as cash, property or shares, made in the seven years before death (and in some cases earlier). 

Without clear, accurate records of these gifts, executors may struggle to complete the forms correctly, which can cause delays in probate or increase the risk of queries from HMRC, adding unnecessary stress at an already difficult time.

With so few keeping record of their gifts, its perhaps no surprise that many have lost track of how much they have given away. Less than a third (31%) of over 55s who have given a financial gift in the last seven years know the exact amount they have gifted. 45% say they could give a rough estimate, and nearly a quarter (24%) have no idea.

However, of those who knew the exact amount or could give a rough estimate, the average amount gifted in the last seven years was £42,056 – significantly higher than you could amass using the annual allowance of £3000. A fifth (21%) of those asked had gifted £50,000 or more. 

When asked the reasons why they didn’t keep record of the financial gifts given, nearly half (48%) said they didn’t give large enough gifts to worry. A similar amount (47%) didn’t know it was necessary, and a fifth (21%) said they were relying on memory.

Individuals may be falling short of keeping record because they aren’t aware of what HMRC classifies as a financial gift. Three in five over 55s (59%) didn’t know that giving furniture, jewellery and antiques counts as a financial gift for IHT purposes. 

Over half (55%) didn’t know that giving stocks and shares listed on the London Stock Exchange is also counted, and a third (32%) didn’t know that giving your house, land or buildings is treated in the same way. 

By not realising these items count as financial gifts, individuals may be giving away significant assets without understanding the potential tax consequences for their estate and their families.

Liz Hardie, tax, trusts and estate planning expert, Canada Life said:

“Gifting to loved ones can be hugely positive – not only can it help reduce an inheritance tax liability, but it can also help loved ones onto the property ladder, support grandchildren through education, or simply make life a bit easier for friends and family. 

“However, if you do not keep a clear record of what you have given and when, you risk creating problems for your family later on. Poor records can mean your executors struggle to complete the paperwork once you pass away, and allowances and exemptions may be missed because they cannot be evidenced to HMRC. This can delay the grant of probate and therefore delay payments to beneficiaries. 

“In the worst cases, if the will has not been drafted in the right way, these delays can leave a surviving spouse or civil partner without timely access to the funds they were expecting to live on.

“Reviewing HMRC’s IHT 400 and IHT 403 forms will help you understand the level of detail required, as your executors will need to fill in this form upon your death. Key information needed is the amount given, who you made the gift to, the date you gave it, and your relationship to that person. It should be filed in a backed-up place that your executor knows the location of. 

“Inheritance tax can be a complex area, and seeking financial advice is essential to help you review your financial planning strategy and avoid any added stress for your loved ones later down the line.”

Research conducted among a nationally representative sample of 2000 UK adults between 17 February 2026 – 20 February 2026. Sample includes 998 55+ year olds.