The best ways to give financially this Christmas include gifting from surplus income, Junior ISAs and bare trusts. In addition, there are annual exemptions, small gift exemptions and charitable giving.

Currently no tax is due on the first £325,000 of any estate but that rises to £500,000 if a property is being left to children or grandchildren for estates under £2m. Married couples and civil partners can leave up to £1m tax-free.

Faye Church, chartered financial planner at Investec Wealth & Investment (UK), said: ‘Gifting to children or grandchildren could be a tax-efficient way to help to improve their financial security, help them pay university tuition fees, pay off student loans or even get them on the property ladder.