you are entitled to gift away, Inheritance Tax (IHT) free, max of Â£3,000 to a person, however many different persons you like, in anyone year. If to this same person you have not offered such gift the previous year, you can gift them Â£3,000, representing previous year's, and another Â£3,000, representing this year's maximum, i.e. total Â£6,000 in one go, which is IHT free. If you gift more than the yearly Â£3,000 maximum level then the automatic IHT free feature strips away off you gift and then you enter the PET zone. For PETs you can gift any amount greater than Â£3,000 to anyone person in anyone year BUT this will be considered IHT free only if you live more than 7 years from the day of the gift. If you dont, this gift is liable to IHT on a apportioned basis. That is, IHT is calculated on this gift as 100%, ie full IHT, if death occurs before 3yrs, 80% for 3-4 yrs, 60% for 4-5 yrs, 40% for 5-6 yrs or 20% for 6-7yrs. In case of a wedding gift you can gift up-to Â£5,000 per spouse IHT free. Also, you could make small gifts of Â£250 per anyone person in a year.
Remember all above are limits involving your gifts to ONE person. So if you want to divide an amount across multiple persons you should consider to slice this amount according to maximum limits above and pass these gifts to the appropriate persons.
Hope this is of some help.