If I gift a rental property to my adult son now, how long do I need to live for it to be outside my estate for Inheritance Tax purposes, and are there any implications for him regarding Capital Gains Tax when he inherits it posthumously?
Quick Answer
For Inheritance Tax, a gifted property needs to be a Potentially Exempt Transfer (PET) meaning you must survive the gift by seven years for it to be fully outside your estate. Your son will not pay Capital Gains Tax when inheriting it, as the property's value is uplifted to market rate at the date of your death.
About This Topic
Understand IHT 7-year rule for gifted property, potential tax on gains, and implications for your son. Dec 2025 UK facts.
This question is part of our Tax & Accounting category, providing expert guidance on UK property investment.
Expert Guidance from Steven Potter
Steven Potter is a UK property investment coach with a £1.5M portfolio and over 5 years of hands-on experience. He has helped over 1,000 students achieve their property investment goals through practical, ethical strategies.
Ready to Take Action?
Get personalised property investment coaching with Steven Potter's Property Freedom Framework.
Learn about the Property Freedom Framework