Giving Money to Family? HMRC's AI Is NOW Watching

Book a call with Your Accountant? https://youraccountant.co.uk/ INHERITANCE TAX UK 2026 - What HMRC Can See, the Gifting Traps, and What Actually Works HMRC just collected a record £8.5 billion in inheritance tax. The fifth consecutive annual record. Rates have not changed. What has changed is how they find the money. Their Connect system now processes over 55 billion data points from banks, Land Registry, DVLA, Companies House, online marketplaces, and even social media. It builds a financial profile of you and cross-references it against what has been declared. If there is a mismatch, they will find it. In this video I explain exactly how HMRC tracks gifts and transfers, the specific mistakes that cost families hundreds of thousands of pounds, and two legitimate strategies that can significantly reduce your inheritance tax bill while keeping you in control of your wealth. In this video I break down: How HMRC's Connect system tracks your money across 30+ data sources using AI Why "taking cash out and handing it over" does not work (and what actually gets flagged) The 7-year rule trap: how a gift designed to help your family can cost your estate an extra £110,000 Joint bank accounts and gifting the family home: why both backfire Strategy 1: Normal expenditure out of income (no cap, no 7-year wait, immediately exempt) Strategy 2: Discretionary trusts and how to move wealth out of your estate while keeping control Why April 2027 changes everything: pensions falling into inheritance tax for the first time This is not about hiding money from HMRC. It is about understanding the rules, documenting properly, and planning while you still have time to act. Resources 📥 Download the FREE 2026 HMRC Tax Guide Record-keeping, MTD and what to do when HMRC get in touch: https://youraccountant.co.uk/how-to-p... Disclaimer This video is for general information only and is not tax, legal, or financial advice. Tax rules depend on your circumstances and can change. We do not support or promote tax evasion. Everything discussed is about staying compliant and planning within the law. Chapters 0:00 – HMRC just broke another inheritance tax record 1:05 – How HMRC's Connect system tracks your money (55 billion data points) 3:20 – The 7-year rule trap that costs families thousands 6:10 – Joint accounts and gifting the house: why both backfire 7:30 – Strategy 1: Normal expenditure out of income (no limit, no wait) 9:45 – Strategy 2: Discretionary trusts (move wealth, keep control) 11:50 – April 2027: pensions and inheritance tax (why this changes everything) #HMRC #InheritanceTax #IHT #UKTax #EstatePlanning #TaxPlanning