HMRC states: “List in date order all of the gifts the person who died made in the last seven years that are not exempt, starting with the oldest first.

“Keep a running total of their values. Check your list to see where the running total goes over the £325,000 threshold.

“You’ll pay tax on: the part of any gift that took the running total over the threshold (and) any gifts made after the threshold.”

Ed Monk, an associate director at Fidelity International, shared his thoughts as to what the recent extortionate inheritance tax receipts really mean for households.