The most common way to transfer property to your children is through gifting it. This is usually done to ensure they will not have to pay inheritance tax when you die. After you have gifted the property, you will not be able to live there rent-free. If you do, your property will not be exempt from Inheritance Tax.

Can you transfer house into children’s name?

In simple terms no! As a homeowner, you are permitted to give your property to your children at any time, even if you live in it. But there are a few things you should be aware of being signing over the family home.

What are the tax implications of gifting property to a child?

There are also tax implications for gifting a property under the full market value. Read more about this here in Capital Gains Tax on Gifted Property for Married Couples and Capital Gains Tax on Gift of Property to Children.

Can a family member gift property to a child?

The process for gifting property (or a share in a property) to another family member is similar to the process for gifting to a child. Generally, the same rules apply (including for transfers to minors and for inheritance tax), regardless of whether the person receiving property is your child, grandchild, sister or another family member.

Can you live in a gift home after it has been gifted?

You can remain living in the home after you have gifted it, but you cannot do so rent-free if you want the property to be discounted from any IHT calculation after the seven-year qualifying period has ended.

What do you need to know about gifting property?

The property must be gifted in its entirety and the donor must not retain any benefit from it or continue to live in it. Income tax relief is available for the market value of the property plus the costs of making the gift, such as legal fees, less any benefit received in return.