What is a gift made "free of tax"?

A gift is free of tax when any Inheritance Tax (IHT), if it is payable, is to be paid out of your Residuary Estate and not to be taken out of the gift or otherwise paid by the recipient.

With our Wills, all gifts, except of the Residue, are free of IHT. Regardless, all gifts to charities are exempt from IHT.