Gifting property to a family member
Key points to think about before transferring a home to a child or relative.
How a gift works
A gift is a transfer where no money changes hands. The deed records that the transfer is a gift, and HM Land Registry updates the register.
Tax considerations
Gifts can have inheritance tax and capital gains tax implications, and living in a home you have given away can cause problems. Get tax advice before you go ahead.
Mortgaged property
A property with a mortgage cannot usually be gifted without the lender’s consent. These cases are referred to a solicitor.
Common questions
Can I give my home to my child and keep living in it?
You can, but continuing to live in a property you have given away without paying for it can be treated as a “gift with reservation” for inheritance tax, and can affect future care-fee assessments. Take tax advice before you transfer.
Do I have to pay tax when I gift a property?
A gift can trigger capital gains tax for the person giving it and have inheritance tax consequences later. The outcome depends on your circumstances, so ask a tax adviser before you go ahead.
Can a mortgaged property be gifted?
Usually not without the lender’s consent, and lenders rarely allow it. Mortgaged gifts are referred to a solicitor rather than handled as a paperwork-only transfer.
This guide is general information about England and Wales, not legal or tax advice. We prepare and submit paperwork; mortgaged or complex cases are referred to a regulated solicitor.
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