How to Gift Property to a Child in the UK Without Paying Tax | 2025

For many families in the UK, gifting property to children is a smart way to provide financial support. It can also help plan for the future and lower inheritance tax. But one important question always arises: “Can I gift property to my child without paying tax?”

The answer is yes — in some cases. While tax rules apply, with the right planning, you may be able to gift property without triggering tax liabilities.

In this guide, we will explain the tax rules and the requirements of HM Land Registry. We will also show how Property Swift, your digital property transfer specialists, makes the process fast, paperless, and easy.

Is It Legal to Gift Property to a Child in the UK?

Yes, gifting property is completely legal in the UK. If you are giving away your home, a second property, or part of your estate, HM Land Registry will accept the transfer. This is true as long as someone properly documents and signs it.

At Property Swift, we handle everything online. We help you prepare documents, complete ID verification calls, and meet HM Land Registry requirements.

What Taxes Apply When Gifting Property?

When gifting property, three main taxes may apply:

1. Inheritance Tax (IHT)

• Property gifts are considered Potentially Exempt Transfers (PETs).
• If you survive 7 years after making the gift, no IHT is due.
• If you pass away within 7 years, the tax authorities may tax the gift depending on its value.

2. Capital Gains Tax (CGT)

• If the property is not your main home, like a rental or second home, you may need to pay CGT. This tax applies to the increase in value since you bought it.

3. Stamp Duty Land Tax (SDLT)

• Your child does not pay SDLT when someone gifts the property without a mortgage.
• If someone transfers a mortgage, SDLT may apply.

How to Gift Property Without Paying Tax

To avoid unnecessary tax charges, consider these strategies:

• Use the 7-Year Rule: Gifts made more than 7 years before death are exempt from inheritance tax.
• Gift a mortgage-free property to avoid triggering SDLT if your child takes on a mortgage. A gift of an unencumbered property avoids this.
• Plan Early: Lifetime planning reduces the risks of inheritance tax and allows time for the 7-year rule to take effect.
• Get Expert Help: Property Swift ensures you complete your transfer correctly. We handle ID verification calls and submit documents on time.

Process of Gifting Property to a Child (Step by Step)

1. Check tax implications - review IHT, CGT, and SDLT rules.
2. Prepare the transfer deed - requires a wet (physical) signature.
3. Complete ID verification call - a compliance step required by HM Land Registry.
4. Submit to HM Land Registry - managed digitally through our platform.
5. Confirm transfer - ownership updated in the Registry.

Common Mistakes to Avoid

• Forgetting the 7-Year Rule can lead to taxes on gifts made shortly before death.
• Ignoring CGT: Second homes and investment properties often trigger capital gains.
• Overlooking mortgages: If someone transfers a mortgage, SDLT may apply unexpectedly.
• Incorrect paperwork: Mistakes or missing details cause HM Land Registry delays.

FAQ Section

Q: Can I gift my property to my child tax-free?

Yes, if you survive 7 years after gifting, the inheritance tax is avoided. If the property is your main home, CGT may also not apply.

Q: Does my child pay Stamp Duty on gifted property?

No, unless the property has an outstanding mortgage, in which case SDLT may apply.

Q: What happens if I pass away within 7 years of gifting property?

The tax authorities may tax the property as part of your estate, depending on its value and the time that has passed.

Q: Do I need a solicitor to gift property to a child?

No, Property Swift is a company that helps with property transfers. They guide you through the process. This includes ID verification calls. They also make sure everything follows HM Land Registry.

Conclusion

Gifting property to a child in the UK is not only legal but also a smart estate planning tool. By knowing the tax rules, especially the 7-year rule, you can often give property as a gift without paying tax.

At Property Swift, we make the process simple, paperless, and fully compliant with HM Land Registry.

💻 Ready to gift your property with confidence?

👉 Start your property transfer today with Property Swift.