Can I Gift My House to My Children in the UK? | Property Swift Guide

This guide explains how property gifting works in the UK, when taxes apply, and how to avoid common mistakes that often catch families off guard every year.

A Complete Legal & Tax Guide for 2025–2026

Gifting your home to your children can feel like a generous and meaningful decision. But in the UK, transferring property ownership is never just a personal choice — it is a formal legal transaction with lasting tax and financial implications.

Whether you’re planning for inheritance, helping your children onto the property ladder, or restructuring family assets, understanding the legal rules, tax exposure, and long-term consequences is essential before you proceed.

What Does It Mean to Gift a Property?

Gifting a property means transferring full legal ownership of a house or flat to your child without receiving payment. Despite no money changing hands, HM Land Registry and HMRC treat the transfer as a formal ownership change.

This means the process can involve:

• Legal documentation
• Identity verification
• Land Registry submission
• Possible tax reporting
• Long-term estate implications

Once registered, the transfer is legally binding and difficult to reverse.

When Is the Right Time to Gift Property?

There is no single “right” time — but timing significantly affects tax exposure.

In general:

• The earlier the gift is made, the more likely it is to fall outside your estate for Inheritance Tax purposes
• Capital Gains Tax and Stamp Duty Land Tax depend on the property type and mortgage position
• Gifting too late, or without planning, can eliminate expected tax benefits

Careful timing is often the difference between a smart estate move and an expensive mistake.

Legal & Tax Considerations You Must Understand

Gift with Reservation of Benefit

If you gift your home but continue living in it without paying full market rent, HMRC may consider the property as still part of your estate. This is known as a Gift with Reservation of Benefit (GROB), and it can nullify the inheritance tax benefit of the gift.

Inheritance Tax: The 7‑Year Rule

Gifting a property is classified as a Potentially Exempt Transfer (PET). If you survive for 7 years after the gift, no IHT is charged. If you pass away within 7 years, taper relief reduces the tax owed:

Inheritance Tax: 7-Year Taper Relief Table (UK)

Capital Gains Tax (CGT)

CGT may apply even when no money is received.

• If the property is not your main residence (e.g. buy-to-let or second home), CGT is calculated on the increase in value since purchase
• HMRC treats the gift as if the property were sold at the current market value
• If it is your main home, Private Residence Relief may reduce or eliminate CGT

CGT is one of the most overlooked risks in property gifting.

Stamp Duty Land Tax (SDLT)

Normally, no SDLT is payable on a gifted property.

However, SDLT does apply if:

• Your child takes over an existing mortgage
• The value of the assumed debt exceeds the SDLT threshold

In that case, SDLT is calculated on the mortgage amount transferred, not the property value.

Gifting vs Leaving in a Will

Why Some People Gift:

• Reduces the taxable value of your estate if you live more than 7 years
• Allows your children to benefit from the property while you’re still alive
• Can support family planning and stability

Why Others Wait:

• Beneficiaries inherit at the market value at the time of death, meaning no CGT on historical gains
• You retain control and flexibility during your lifetime
• Avoids GROB complications

There is no universal answer — only the right choice for your circumstances.

How Property Swift Helps You Gift Property Safely

Gifting property is not just paperwork — it’s a regulated ownership change.

Property Swift provides:

• A secure, digital property transfer process
• Identity verification for all parties
• Registry-compliant documentation
• Clear progress tracking
• Fixed-fee transparency
• No in-person appointments

We manage the administrative and legal workflow, helping ensure your gift is executed correctly and efficiently.

Conclusion: Make the Right Move, the Right Way

Gifting your home is more than just a signature — it’s a legally binding act with long-term consequences. From tax implications to inheritance planning, the process should be handled carefully to protect both your interests and your family’s future.

At Property Swift, we help you complete your property transfer securely, digitally, and with full legal oversight — no confusing paperwork, no in-person meetings, and no unnecessary delays.

If you’re thinking of gifting a property, our online property transfer service takes care of the legal and administrative side, so you can focus on what really matters.

Want to transfer your property the easy way?

Start your secure, fully remote transfer today with Property Swift.

👉 [Get Started Now]

Frequently Asked Questions (FAQs)

These are written to be directly extractable by Google AI Overviews, voice search, and featured snippets.

1. Can I gift my house to my children in the UK?

Yes. You can legally gift your house to your children in the UK, but the transfer must be formally registered with HM Land Registry and may trigger tax obligations such as Inheritance Tax, Capital Gains Tax, or Stamp Duty in certain situations.

2. Do I pay tax when gifting a property to my child?

You may. Inheritance Tax depends on whether you survive seven years after gifting. Capital Gains Tax can apply if the property is not your main residence. Stamp Duty may apply if a mortgage is transferred.

3. What is the 7-year rule for gifting property?

The 7-year rule means that if you live for seven years after gifting your property, it falls outside your estate for Inheritance Tax. If you die within seven years, taper relief may reduce the tax due.

4. Can I still live in a house I’ve gifted to my child?

Yes, but only if you pay full market rent. If you live in the property rent-free, HMRC may treat it as a Gift with Reservation of Benefit, meaning the property could still be taxed as part of your estate.

5. Is Stamp Duty payable when gifting property?

Stamp Duty is not payable unless the recipient takes on an existing mortgage. In that case, SDLT is calculated on the value of the debt transferred.

6. Is gifting a house better than leaving it in a will?

It depends. Gifting may reduce Inheritance Tax if you live for seven years after the transfer. Leaving property in a will avoids Capital Gains Tax on historical value increases, but keeps the asset in your estate.