Thinking about gifting property to your children while you’re alive? It’s not as simple as signing over the deeds and waiting seven years. This week’s article unpacks the traps: how the seven-year rule and taper relief actually work, why continuing to live in a gifted property triggers “gift with reservation of benefit” rules that keep it in your estate regardless of how long you survive, and why capital gains tax on second homes or rental properties can be due immediately, even though inheritance tax might eventually be avoided. We also cover the limits of holdover relief, principal private residence relief, and the lesser-known pre-owned asset tax, which exists specifically to catch clever workarounds. Finally, we look at safer alternatives – trusts and life interest arrangements – that can achieve similar goals with fewer tax traps. Read the full article, or book a discovery call to talk through your own situation.
TLDR: Gifting Property to Your Children – The CGT and IHT Traps
Need to discuss your estate?
Book a discovery call
Book a free discovery call to learn more about how to protect your assets.
Book a discovery call
Download our FREE Estate
Planning Guide
Planning Guide
Client Testimonial
“Having seen John of Legacy Wills present at a property event, it was clear he had both the breadth of knowledge and experience and also the ability to make a very dry subject both understandable and engaging. That’s a tough call when talking about Wills, Trusts and death. John produced Wills and POA’s for myself and my wife in a timely, effective and reasonable manner. I have subsequently recommended him to numerous colleagues and friends to cut out the jargon and challenges surrounding this critical protection, which is too often deferred or neglected.”
Dan Norman