Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said: “Inheritance tax receipts continue to track higher – they have hit £6.6billion for the year so far and remain well on track for another record come tax year end.
“This is largely down to the mix of rising asset values and frozen thresholds which pull more people into the net.
“There are ways you can reduce your inheritance tax liability though.
“Gifts of any value pass out of your estate after seven years – this can make it a good idea to give away assets while you are still alive rather than leaving them in a Will.
“There is also an array of different allowances that enable you to gift assets away immediately.
“These include the £3,000 annual allowance as well as smaller allowances of £250 for smaller gifts.
“There are also rules around gifting to loved ones on marriage with gifts to children of £5,000, grandchildren and great grandchildren of £2,500 and £1,000 to anyone else.
“Such gifts leave your estate for inheritance tax purposes immediately.”
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