Gift of share of property PET/GWR


I would be grateful for some advice on this one.

The deceased lived with his wife and daughter. The property was owned 50/50 between husband and wife. In 2017 the deceased and the wife each gifted to their daughter a one sixth share in the property - Land Registry was updated so they held the property as tenants in common with a one third share each. They all continued the live in the property. The deceased died this year so obviously PET is now chargeable, but do I also have to declare it as a GWR?


Natalie Tonkin
Beviss & Beckingsale LLP

Hi Natalie,

Aren’t they covered by the exemption where living together and equal shares means no GWR arises? As long as they share the bills.

PET will still be relevant.

Lucy Orrow CTA TEP
Lambert Chapman LLP

Yes, each spouse has made a gift with reservation unless each spouse pays a market rent to the daughter for occupying the property [FA 1986 Sch 20 para 6(1)(a)] or the conditions of FA 1985 s102B are satisfied.

Malcolm Finney

Did they all share the outgoings?

Sue Howard
Talbots Law

It’s not a GWR provided the parents continued to pay at least 2/3 of the household related outgoings.

See s.102B(4) FA 1986

Andrew Goodman
Osborne Clarke LLP

Hi Lucy

Yes, that looks right, I had forgotten about that. Thank you!

Best wishes,

Natalie Tonkin
Beviss & Beckingsale LLP

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