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The short answer
For UK Inheritance Tax you can give away £3,000 in total each tax year free of tax, carrying any unused amount forward one year only, and give up to £250 to any number of other people. Larger gifts to relatives in Nigeria are tax-free if you live for seven years after making them, and regular support paid from surplus income can be exempt with no limit. Nothing is due when you send the money; the rules matter only if you die within seven years.
Sending money home is part of life for most Nigerians in the UK: school fees for a nephew, a contribution to a father's surgery, a lump sum towards a sister's house. None of this triggers UK tax at the time. The questions arise later, because UK Inheritance Tax can look back at gifts made in the seven years before death. Knowing the exemptions means most family support never comes into the calculation.
The exemptions
| Exemption | Amount (GOV.UK) | Key condition |
|---|---|---|
| Annual exemption | £3,000 in total per tax year | Unused amount carries forward one tax year only |
| Small gifts | Up to £250 per person, any number of people | Not to someone who has had another allowance from you |
| Wedding or civil partnership | £5,000 to a child, £2,500 to a grandchild, £1,000 to anyone else | Can combine with other allowances except small gifts |
| Normal expenditure out of income | No set limit | Regular, paid from income, affordable after your usual living costs |
The tax year runs from 6 April to 5 April. GOV.UK gives financial support to an elderly relative as an example of normal expenditure out of income, which fits monthly upkeep for parents in Nigeria; see regular support for parents as gifts out of income.
How the £3,000 works in practice
Example only. In 2025 to 2026 you gave nothing beyond small amounts. In 2026 to 2027 you send your brother £5,000 towards his shop in Aba. You can use £3,000 for 2026 to 2027 plus £2,000 of the unused £3,000 carried forward from 2025 to 2026, so the whole gift is exempt. The remaining £1,000 carried forward cannot move on to 2027 to 2028; GOV.UK says the carry-forward is "only for one tax year".
The £250 small gift allowance is separate. You can send £250 to each of ten cousins for Christmas and all are exempt, but you cannot give one person £250 under the small gifts rule and also cover more for the same person with your annual exemption.
Larger gifts and the seven-year rule
A gift above the exemptions is not taxed if you live for seven years after making it. GOV.UK says gifts made within three years of death are taxed at 40%, with taper relief for gifts made three to seven years before death: 32%, 24%, 16% and 8%. Taper relief only applies if the gifts in the seven years before death exceed the £325,000 threshold. So for most families, a gift of £20,000 towards a house in Nigeria simply uses part of the £325,000 nil-rate band if death follows within seven years. Our guide on the seven-year rule for gifts to Nigeria covers the larger cases.
Common family situations
- School fees for a niece every term. Regular, from salary, affordable: a strong candidate for normal expenditure out of income. Keep the pattern steady and documented.
- A one-off £10,000 towards a parent's operation. £3,000 (or £6,000 with carry-forward) is exempt; the rest is a gift that falls out of account after seven years.
- Paying a relative's rent directly to the landlord. Still a gift to the relative. GOV.UK gives paying a child's rent as an example of normal expenditure out of income where the conditions are met.
- Money sent for a sibling's wedding. Up to £1,000 is exempt as a wedding gift to someone who is not your child or grandchild, and you can combine it with the annual exemption.
If you are based outside the UK
GOV.UK says that if someone living outside the UK dies, Inheritance Tax is due only on their UK assets, and that a person counts as based abroad if they lived in the UK for less than 10 of the last 20 years. Nigerians who have lived in the UK for a decade or more are inside the full rules; recent arrivals may not be.
Records worth keeping
- What you gave, to whom, the value in pounds, and the date. GOV.UK asks for exactly these.
- Transfer confirmations showing the recipient's name.
- For regular support, a note showing it came from income and left you with enough to live on: payslips and a simple budget.
- Which exemption you applied, year by year.
Where Pryme fits
Sending from a Pryme account leaves a dated record of each payment, its value in pounds and naira, and the recipient. You hold GBP and NGN together, convert with Swap when you choose (the rate and the fee are shown before you approve), and send to Nigerian accounts with Send. A Personal Assistant can prepare monthly support payments for you to approve; see the assistant.
Questions people ask
How much money can I give my family in Nigeria tax-free?
For Inheritance Tax, £3,000 a year in total under the annual exemption, plus £250 each to other people, plus regular support from surplus income with no set limit. Larger gifts are tax-free if you live seven more years.
Do I pay tax when I send money to relatives in Nigeria?
No UK tax is due at the time of a gift. The rules matter only for Inheritance Tax if you die within seven years.
Can I carry forward the £3,000 annual exemption?
Yes, unused exemption carries forward to the next tax year only, so you could give up to £6,000 in one year if you used none the year before.
Does sending £200 a month to my parents count against the £3,000?
Not if it qualifies as normal expenditure out of income: regular, paid from your income, and affordable after your usual living costs.
Sources
- GOV.UK: Inheritance Tax, gifts · accessed Oct 2026
- GOV.UK: Inheritance Tax (updated 30 Sep 2026) · accessed Oct 2026
- GOV.UK: Inheritance Tax when someone living outside the UK dies · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.