Gifting Property & Deed of Gift
At Bell Lamb & Joynson, our specialist gifting property solicitors assist with executing a Deed of Gift to transfer your property. We provide clear, straightforward advice as part of our trusted estate planning services.
Are You Considering Gifting Property?
Gifting assets such as a house, cash, shares, or a valuable item can be useful in estate planning and a way of supporting loved ones during your life. However, if you’re considering gifting property or other assets, it’s important to seek legal advice to understand the implications and avoid any pitfalls.
We manage the transfer of your property to ensure your rights and interests are protected, whether you’re gifting it to your children, spouse, relative, or a limited company. We also offer additional advice on trusts and wills, taxes, property law, and more.
Your Reliable Gifting Property Solicitors
- Award-winning firm
- Over 200 years of experience
- Dedicated team of experts
- Full range of estate planning
- Trusted Deed of Gift advice
- Fast communication
- Protecting your rights and interests
How Gifting Property Works
Making a gift of property involves the transfer of your property to someone in your lifetime to reduce the amount of Inheritance Tax (IHT) on your estate, or to allow a loved one access to it now rather than later. There are several legal and tax implications when making a gift, and it’s highly recommended that you speak to an expert gifting property solicitor before starting the process.
One of the main reasons for gifting property is to mitigate IHT. A gift made during someone’s lifetime is referred to as a Potentially Exempt Transfer (PET), as it may become exempt from IHT if you survive for seven years after making the gift. However, if you die within those seven years, the gift may still be subject to it. If this occurs, the value of the gift is added back into the estate for IHT purposes.
If you live for more than three years after giving the property, the amount of due IHT may start to reduce:
| Years Between Gift and Death | Effective IHT Rate (if 40% applies) |
|---|---|
| 0–3 | 40% |
| 3–4 | 32% |
| 4–5 | 24% |
| 5–6 | 16% |
| 6–7 | 8% |
| 7+ | 0% |
If you continue living in a gifted property, HMRC could still class you as the owner. However, gifting property to direct descendants, such as children or grandchildren, works alongside the £175,000 Residence Nil Rate Band (RNRB) allowance. Due to the complex rules surrounding IHT, we advise speaking with a professional before deciding on the best course of action.
If you gift a property and become bankrupt within five years, your trustee in bankruptcy could void the gift. There may be other considerations, like protecting your property from bankruptcy or divorce risks. Our team will advise you of your options to ensure your assets are safeguarded for your loved ones in the future.
Stamp Duty Land Tax (SDLT) isn’t payable when gifting property to a family member if there’s no consideration. However, if the recipient takes an existing mortgage, SDLT could then be payable. If you gift property to a limited company, the situation is different, and SDLT is generally payable on the market value if the company is linked to you.
Capital Gains Tax (CGT) may be payable on your property, depending on the circumstances of the gift. In most cases, gifting a property is treated as disposal at market value, and CGT may be payable on any gain in value since the date of acquisition. CGT doesn’t apply to someone’s main residence, as it’s often exempt, and instead it applies to second and subsequent properties.
Our expert tax, trusts and estates lawyers will be able to set out the most efficient way of structuring your estate and advise you on how to reduce your estate’s IHT liability legitimately.
A Deed of Gift is a legal document transferring ownership. In addition to executing a Deed of Gift, you must also register the transfer at the Land Registry (which takes a few weeks). The drafting and execution of a Deed of Gift can be dealt with fairly quickly once you’ve decided on the most tax-efficient way of dealing with the gift alongside your trusted gifting property solicitor.
Contact Our Gifting Property Solicitors Today
At Bell Lamb & Joynson, we have a team of highly experienced gifting property solicitors. We can complete your Deed of Gift to ensure it’s legally valid and worded correctly, while providing trusted legal advice and support on the associated tax implications. As the tax consequences can be significant, working with a reliable property solicitor when completing your Deed of Gift is important.
For more information, please contact our gifting property solicitors today.
Deed of Gift FAQs
How much does a Deed of Gift cost in the UK?
The cost for a Deed of Gift varies depending on the complexity of your situation and the amount of advice you require. Our team will calculate the overall cost based on these factors and offer transparent, competitive advice and prices. Call our gifting property solicitors on 03444 124348 to discuss more accurate fees.
Do you pay tax on a Deed of Gift?
Yes, you may have to pay tax on a Deed of Gift. For example, Capital Gains Tax (CGT) may be payable if the asset has increased in value, and Inheritance Tax (IHT) may be payable if you die within seven years and the gift is chargeable.
How do you make a Deed of Gift?
To make a Deed of Gift, you must:
- Decide what you want to gift and to whom
- Seek legal advice from a gifting property solicitor
- Have your solicitor draft your Deed of Gift to avoid inaccuracies
- Sign the document with a witness, who must be an independent adult
- Complete Land Registry transfer forms to register the new ownership
Do I need a solicitor for a Deed of Gift?
You do not legally need a solicitor for a Deed of Gift, but it's strongly advised. Gifting property solicitors ensure the validity, assist with property transfers and relevant forms, and advise on tax implications to prevent issues.
Are your Deed of Gift solicitors near me?
Yes, our Deed of Gift solicitors are near you! Our main office is in Liverpool, but we are not limited to this area. Our services are available to individuals across the country thanks to our modern systems, email, and telephone communications. No matter where you are, we can help.