You can pass a home to your husband, wife or civil partner when you die. There’s no Inheritance Tax to pay if you do this.
From 6 April 2017, you’ll get a bigger Inheritance Tax threshold if you give away your main home to your children (including adopted, foster or stepchildren) or grandchildren.
Giving away a home before you die
There’s normally no Inheritance Tax to pay if you move out and live for another 7 years.
If you want to continue living in your property after giving it away, you’ll need to:
- pay rent to the new owner at the going rate (for similar local rental properties)
- pay your share of the bills
- live there for at least 7 years
You don’t have to pay rent to the new owners if both the following apply:
- you only give away part of your property
- the new owners also live at the property
If you die within 7 years
If you die within 7 years of giving away all or part of your property, your home will be treated as a gift and the 7 year rule applies.
Call the Inheritance Tax and probate helpline if you have questions about giving away a home. They can’t give you advice.