Questions And Answers

Generally when giving sums of money to people and it is not a gift in kind it is purely a gift there are no liabilities for it, however if you die within 7 years of making the gift then strictly speaking they are liable to pay IHT on that at a staggered rate depending on when (which i dearly hope you won't) die.

say if i did how would HMRC ever find out?

By reading posts on sites like this ; ) Plus the executor has a duty to look into the last 7 yrs of your financial history i believe. You could always give it to them as a loan, but document it well

Anything over £3,000 in one tax year is a "potentially exempt transfer" - and you can only give that to one person. You can give up to £250 to as many people as you like (as long as they didn't get the £3,000). PETs reduce your nil rate band allowance on death within (normally) 7 years.
HMRC are taking a much tougher line on tax fraud, and they have access to bank details.
So keep a careful record of all gifts so that your executor doesn't end up in Court and with a massive IHT penalty!

If you operate it as a loan the asset will remain in your estate for IHT purposes. As Stephen indicates you can use your potentially emempt amount of £3,000 per year to reduce amounts gifted, there is also a limited carry forward of one year of £3,000 if you haven't used it in the previous year.

So you might consider staggering gifts. £6,000 in first year, £3,000 next etc.

This could also be supplemented by the gifts out of surplus income exemption. Only gifts out of capital are liable to IHT. If you can prove that you have excess income over your expenditure then you can make a series of regular gifts which will be outside the scope of IHT even if you do die within 7 years.