Many believe the 7-year rule wipes out Inheritance Tax on gifts, but if you still benefit from what you’ve given away, HMRC may treat it as though you never gave it up. This is called a Gift with Reservation of Benefit (GWR). Common traps include giving your home to children or putting it into a trust but continuing to live there rent-free. GWR rules can lead to unexpected tax bills and other risks — get advice before making large gifts.
