A gift is free of tax when any Inheritance Tax (IHT), if it is payable, is to be paid out of your Residuary Estate and not to be taken out of the gift or otherwise paid by the recipient. Specific gifts of items or of money within Wills are generally made free of IHT, unless it is or you feel it is appropriate to specify otherwise. All gifts to charities are exempt from IHT. See the IHT Exemptions page.