Introduction: Why So Many Families Get This Wrong
Gifting property to children sounds simple — but when you look closer, it’s one of the most complex areas of UK tax.
Between Capital Gains Tax, Inheritance Tax, and HMRC’s “Gift with Reservation” rules, even the best intentions can create unwanted bills.
That’s why we’ve put together this five-part guide — to help you understand how property gifting really works, the rules behind it, and the safer alternatives to consider.
Whether you’re planning ahead, already own buy-to-lets, or helping your children get on the property ladder, this guide explains what you need to know before transferring ownership.
🎥 Watch the Full Gifting Series on YouTube
Prefer to watch instead of read?
You can find the entire Gifting Property to Your Children series on my YouTube channel — each video explains a key stage of the process in plain English.
👉Watch the playlist: Gifting Property to Your Children (UK 2025/26) – Full Guide
Part 1 – What Counts as a Gift in the Eyes of HMRC?
Many parents want to give their property to their children to “avoid tax” or “save inheritance.”
But HMRC has very clear rules about what a gift actually means — and it’s not as simple as handing over the keys.
Read the full article: What Counts as a Gift in the Eyes of HMRC?
🎥 Watch the video: Part 1 – What Counts as a Gift in the Eyes of HMRC?
Part 2 – Capital Gains Tax on Gifting Property Explained (2025/26)
Even if no money changes hands, gifting a property can trigger an immediate Capital Gains Tax charge.
This part breaks down how HMRC values gifts, which rates apply, and where reliefs like Private Residence Relief might still help.
Read the full article: Capital Gains Tax on Gifting Property Explained (2025/26)
🎥 Watch the video: Part 2 – CGT on Gifting Property Explained (UK 2025/26)
Part 3 – Inheritance Tax and the 7-Year Rule
The 7-year rule is one of the most misunderstood parts of Inheritance Tax.
Survive seven years after gifting and your property may fall outside your estate — but not if you still live in or benefit from it.
This post also explains Taper Relief and how partial reductions work between years 3 and 7.
Read the full article: Inheritance Tax and the 7-Year Rule – What You Need to Know
🎥 Watch the video: Part 3 – Inheritance Tax and the 7-Year Rule Explained (UK 2025/26)
Part 4 – Gift With Reservation – Why Living in a Gifted Property Can Backfire
If you gift your home but keep living in it, HMRC treats it as never having been gifted at all.
This part explores the Gift With Reservation rule, the Pre-Owned Asset Tax, and how landlords can accidentally trigger both.
Read the full article: Gift With Reservation – Why Living in a Gifted Property Can Backfire
🎥 Watch the video: Part 4 – Gift With Reservation Explained (UK 2025/26)
Part 5 – Alternatives to Gifting Property: Trusts, Joint Ownership & Insurance
Sometimes gifting isn’t the best route — especially if you still need control or use of the property.
This final part covers safer alternatives such as Trusts, joint ownership, and Life insurance to help protect assets without triggering unnecessary tax.
Read the full article: Alternatives to Gifting Property – Trusts, Joint Ownership & Insurance
🎥 Watch the video: Part 5 – Alternatives to Gifting Property (UK 2025/26)
Key Takeaways from the Series
- Gifting property is treated as a disposal at market value — even if no cash is exchanged.
- The 7-year rule helps reduce Inheritance Tax only if you stop benefiting from the property.
- Gift With Reservation can undo tax planning if you still live in or use the gifted property.
- Pre-Owned Asset Tax (POAT) can charge income tax on rental benefits from gifted buy-to-lets.
- Trusts, Joint ownership, or Life insurance can be smarter than outright gifting, but they’re not one-size-fits-all. What works for one family can create tax issues for another, always get professional guidance first.
Final Word
Gifting property is one of the most generous — but also one of the riskiest — financial decisions you can make.
The rules are layered, the taxes overlap, and one mistake can undo years of planning.
📞 Book a Property Tax Review if you’re thinking of gifting or transferring property.
We’ll help you choose the right structure for your family — and make sure the gift really counts.