This note explains how gifts of land, buildings and personal property are treated in England and Wales in 2024, and highlights key formalities, tax considerations and practical risks for donors and recipients. It is prepared for readers based at our London office (Holborn Gate, 330 High Holborn, London, WC1V 7QH, England) and international clients considering or managing inter vivos gifts.

Overview: what makes a valid gift?

Under general English law a valid inter vivos gift requires three elements: (1) donative intention by the giver; (2) delivery of the gift to the recipient (or an act constituting transfer); and (3) acceptance by the recipient. The way those elements are satisfied depends on the nature of the asset.

Gifts of land and formalities

Gifts of land or registered real property must comply with statutory formalities. A transfer of a legal estate in land must be made by deed (see Law of Property Act 1925 and the Law of Property (Miscellaneous Provisions) Act 1989 on execution requirements). For registered land, a transfer is typically effected by a signed transfer form (for example TR1) and an application to HM Land Registry to change title.

Practical points:

• Lender consent: where the property is subject to a mortgage or charge, the lender’s consent is usually required. Outstanding secured borrowing may be treated as consideration for stamp duty purposes if assumed by the recipient.
• Possession and control: for land, registration and delivery of the deed are the principal acts completing the gift; for chattels, physical delivery and acceptance are decisive.
• Revocation: a donor can generally revoke a gift before the transfer is completed; once proper execution and delivery (and registration for land) have occurred, reversal is limited and typically requires court action (eg for undue influence, fraud or mistake).

Tax, trusts and practical risks

Tax consequences are important. Gifts may have implications for Inheritance Tax (IHT) — certain lifetime transfers are treated as potentially exempt transfers and may become chargeable if the donor dies within seven years — and for Capital Gains Tax (CGT), with inter vivos gifts treated as disposals at market value for CGT purposes except in limited cases (for example transfers between spouses and civil partners). Stamp Duty Land Tax (SDLT) may arise where there is chargeable consideration (including assumption of mortgage).

Other risks to consider include the possibility that a gift may be set aside because it was induced by undue influence, or because the donor lacked capacity. Gifts intended to benefit others are sometimes better executed through well-drafted trust arrangements or by making specific provisions in a will. Professional tax and trust advice is commonly required for higher-value transfers.

Practical checklist

• Confirm donor’s capacity and clear intention to gift.
• Identify the asset type (registered land, unregistered land, lease, chattel, shares) and applicable formalities.
• If land/estates: prepare and execute a deed; complete the appropriate Land Registry transfer form (eg TR1) and submit for registration.
• Check for mortgages, charges or third-party rights and obtain lender/third-party consents where needed.
• Assess tax implications (IHT, CGT, SDLT) and seek specialised tax advice where material sums or complex circumstances are involved.
• Keep thorough contemporaneous records of intention, delivery and acceptance.

Jurisdiction and sources

• HM Land Registry: guidance on forms and registration for transfers of registered title (HM Land Registry).
• HM Revenue & Customs / GOV.UK: guidance on Inheritance Tax, Capital Gains Tax and Stamp Duty Land Tax (HMRC / GOV.UK).
• Legislation: Law of Property Act 1925 and Law of Property (Miscellaneous Provisions) Act 1989 (legislation.gov.uk).

Scotland and Northern Ireland operate under different conveyancing and land registration regimes; this note applies to England and Wales only. For specific transactions, particularly those involving taxation or disputes over capacity or undue influence, take tailored legal and tax advice.

General information only; not legal advice and not a substitute for advice on a particular matter.