As with gifting to grandchildren, you can give away up to £3,000 worth of gifts tax-free to your children in a single tax year. This is known as your annual exemption. Technically, you can gift as much money to your children or other family members as you like, but in order for your gift to be Inheritance Tax-free, you would need to live for at least seven years from the date the gift is made. This is what is known as the seven year rule for gifts – officially known as a Potentially Exempt Transfer (PET) – which we’ll cover in more detail later. Note that there may still be Capital Gains Tax due when gifting money to children.