12 gifts to give this festive season

At this time of year, we're usually focused on what to put under the tree. How we're going to find something for that hard-to-buy-for brother-in-law, whether we can track down the latest Labubu doll for the young person in the family, and what on earth will impress that aunt who's always underwhelmed. There's so much emphasis on giving to others - making sure everyone else is happy, sorted, and properly celebrated.

But there are other kinds of gifts worth thinking about too - ones that could make a real difference to the people you care about, and gifts you can give to you for your own wellbeing. In true financial planning style (!) some of these gifts involve making smart use of tax allowances and exemptions. Others are about giving yourself permission to step back, breathe, and protect your energy during what can be an overwhelming season.

And now, following the Autumn Budget, we have clarity around pension and inheritance tax (IHT) rules which means those who had been holding off making decisions can act.

So let's look at what you can actually do - both in terms of planning your legacy and being kinder to yourself over what can be quite a demanding season.

1. The gift of your annual exemption

Let's start with the simplest one. You can give away £3,000 each tax year without it counting towards your estate for IHT. And if you didn't use last year's gifting allowance, you can carry it forward - meaning a couple could potentially gift £12,000 in one go.

It's straightforward, tax-efficient, and it's a lovely way to help someone you care about. Whether it's contributing to a grandchild's first car or helping with a house deposit.

2. The gift of saying no

Something that won't appear on any tax form but might be just as valuable, is remembering that you don't have to do everything for everyone all the time.

It's easy to feel that December is pre-programmed with rituals you can't do anything about. But it is possible to the pressure off. You can politely decline an invitation. You can order the cheese board instead of making it from scratch (I’ll see you in M&S nearer the big day!). You can skip the office party if you'd rather have a quiet evening at home.

Being intentional about where you spend your energy helps you protect what matters, as well as helping you arrive at Christmas with enough left to actually enjoy it. 

3. The gift of small gestures

Here's a lovely one: you can give £250 to as many people as you like, completely tax-free. The only catch is they can't be someone who's already benefited from your £3,000 gifting allowance.

These small gifts can add up to something meaningful. A contribution to someone's holiday fund, help with driving lessons, or simply treating someone to something they wouldn't buy for themselves. It's a way of spreading a bit of joy without any tax implications.

4. The gift of clarity

One of the most valuable things you can give yourself right now is clarity about what truly matters to you. Not just in terms of money, but in life generally.

Do you want to work as little as possible? Provide for your children or grandchildren? Finally book that trip you've been putting off? Write that book that wakes you up in the middle of the night quietly reminding you it’s there? Or invest time in learning something new (I’m planning to make time to learn the guitar next year)?

Whatever it is, being clear about your priorities helps everything else fall into place. And sometimes, especially at this reflective time of year, it's worth pausing to check that the direction you’re heading still fees right, or whether something is ready to shift.

5. The gift of celebrating milestones

For some families, wedding bells could be ringing and with them, the chance to support a new chapter.

Wedding gifts have their own special rules. Parents can give £5,000, grandparents can give £2,500, and anyone else can give up to £1,000, all free from IHT.

These are generous allowances that recognise the significance of these occasions. Whether it's helping to pay for the day itself or contributing to a couple's first home together, these gifts can make a real difference at a pivotal moment in someone's life.

6. The gift of time

Not every gift needs to be wrapped in paper. Sometimes the most valuable thing you can give is your time and attention.

This doesn't have to mean grand gestures. It could be as simple as a proper catch-up with someone you've been meaning to see, finally having that conversation you've been avoiding, or giving yourself the gift of a morning without emails. Even a weekend without any obligations at all.

Time is the one resource we can't get more of, which makes it all the more meaningful when we choose to give it intentionally.

7. The gift of the seven-year rule

For larger gifts, the seven-year rule is an important consideration. If you survive seven years after making a gift, it falls outside your estate entirely for inheritance tax purposes.

If you pass away within that period, the gift may be subject to IHT, although 'taper relief' can reduce the rate for gifts made between three and seven years before death. This is not a quick decision, but when used thoughtfully, it can play a meaningful role in long-term legacy planning.

8. The gift of treating yourself

Here's a quiet permission slip to include yourself in the giving. 

It doesn't have to be expensive or elaborate. It might be that book you've been wanting to read, a luxurious coffee from somewhere you don't usually go, or simply an afternoon with absolutely nothing scheduled.

Think of it as restoring your own reserves so that whatever you give to others comes from a place of choice and not depletion.

9. The gift of regular contributions

One of the lesser-known IHT exemptions is that gifts made from regular income, rather than capital, can be exempt from IHT immediately. This is known as 'normal expenditure out of income' and can be particularly effective for those who want to help family members on an ongoing basis.

The key requirements are that the gifts must be part of your regular spending pattern, made from income rather than savings, and leave you with enough to maintain your usual standard of living.

In practice, this could mean helping with school fees, contributing regularly to a grandchild's savings, or providing regular financial support to an adult child. As long as it's affordable and documented properly, it's a generous and tax-efficient way to help loved ones when they need it most.

10. The gift of trusts and life insurance

Trusts can be powerful tools for inheritance tax planning, allowing you to transfer assets out of your estate while maintaining some control over how they're used. Different types of trusts suit different situations, so this is an area where professional advice is essential.

Similarly, life insurance policies placed in trust can provide the funds needed to meet an IHT bill without increasing the value of your estate. This ensures your beneficiaries aren't forced to sell assets to meet the tax liability - which could mean selling the family home or liquidating investments at what is already a very difficult and emotional time.

These aren't quick fixes you can sort out in an afternoon, but they're important elements of a carefully considered long-term plan. 

11. The gift of boundaries

This one can feel uncomfortable at first, but it matters.

You're allowed to have boundaries around your time, your energy, and your money. If someone asks you for financial help and you're not comfortable giving it, you can say no. If you're feeling pressured to spend more than you want to on gifts, it’s reasonable to suggest alternatives.

Boundaries aren’t about withholding generosity; they’re about giving from a place of choice and stability. When your own foundations are secure, you'll be in a better position to help others when and where you genuinely want to.

12. The gift of professional advice

Inheritance tax rules are complex and subject to change. What works for one family may not suit another.

Thoughtful financial planning brings structure, clarity and calm to decisions that can otherwise feel overwhelming, helping you take advantage of all available reliefs and exemptions, while ensuring your plans reflect what you value most. By planning carefully now, you can significantly reduce the IHT burden on your estate and ensure more of your wealth reaches the people and causes you care about most.

And if you're already working with a financial adviser - like me - remember that I'm only ever a phone call away. Whether you're thinking about making gifts, reviewing your estate plan, or simply want to talk through your options, that's exactly what I'm here for.

Wishing you a wonderful Christmas this year, and for those of you who have experienced ill health or loss this year, kindness and space when you need it.  I am looking forward to catching up with you in 2026.