The annual rates will go up from 1 May 2023. This is the first time the 4.75% interest rate has been reviewed since 2013.

Discounted gift schemes are an inheritance tax planning arrangement where the investor or investors place a bond or policy into trust, retaining the right to receive a specified level of withdrawals or policy maturities for the remainder of their life or lives.

These schemes are an estate planning vehicle designed for individuals, or married couples/civil partners, who have excess capital they are prepared to give away but still need payments from their capital to supplement their income.