'A free holiday still counts as a gift
Joanne Padilla, Which? money expert, says…Unfortunately, paying for the holiday is likely to be considered a gift by HMRC.
That might not be an issue if you live for another seven years, in which case the holiday would not be liable for inheritance tax (IHT). If you die before then, the holiday’s value could be counted as part of your estate.
If you plan to leave your home to direct descendants you’ll also benefit from the residence nil-rate band of £175,000. So your estate would need to be worth more than £500,000 (£1m for couples) before any IHT is due.
If it’s a smaller trip and you spent less than £250 per person, this could be covered by the small gifts allowance. This can only be used for gifts to people who haven’t also benefited from your annual allowance in the same tax year, meaning that any other gifts you give those family members during the same tax year could be taxable.
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source https://www.which.co.uk/news/article/could-our-family-holiday-lead-to-an-inheritance-tax-bill-aYuS84A9tMPe