How do I gift my house to my child tax-free in the UK?

Answer

Transferring your property to your children as a gift can be a strategic way to potentially avoid paying Inheritance Tax under specific circumstances. However, it's essential to understand that if you include the same property in your Will instead of gifting it outright, it will be considered part of your estate's value and may be subject to taxation.

By gifting property before your passing, you can potentially reduce your exposure to Inheritance Tax on other assets in your estate. Beyond tax benefits, passing on your property allows you the peace of mind that your home will go to the intended recipients. Taking control of these decisions now ensures that your assets are distributed according to your wishes, providing a sense of security in uncertain times.

Moreover, transferring a significant asset like property to your children can also greatly benefit them. They can use the property for their residence or generate rental income, offering financial stability and opportunities for them in the future.