Grandparents’ spending on festive gifts to hit £2.8bn

Grandparents are set to spend £2.8 billion on gifts for their grandchildren this Christmas, a report has claimed.

Research from SunLife claimed the average grandparent will spend £81 on each grandchild before 25 December 2019 - up from £67.62 in 2018.

The average grandparent, therefore, will spend £324 on their grandchildren in 2019 - £53.12 more than last year's figure of £270.48.

Grandparents in Glasgow were the most generous by spending £139 on each grandchild, followed by those in Newcastle (£119).

One in six grandparents around the UK said they are happy to spend more to get the right presents for their grandchildren.

Ian Atkinson, marketing director at SunLife, said:

"We know it can sometimes be tricky for grandparents to know what to get their grandchildren.

"Top requests include Harry Potter and Star Wars Lego sets, Peppa Pig toys, and Baby Annabell dolls. Sweets and chocolates are also high on the list."

Christmas gifts made by grandparents out of their normal income are usually classed as exempt from inheritance tax.

A grandparent can give as many gifts of up to £250 per person as they want during 2019/20 as long as they have not used another exemption on the same person.

Making gifts to family and friends can also be a tax-efficient way to reduce the value of an estate for inheritance tax purposes.

Talk to us about inheritance tax.