Free Gift Declaration Template
A gift declaration (also known as a gifted deposit letter or deed of gift) formally records that money or property has been given as a genuine gift with no expectation of repayment. It is commonly required by mortgage lenders, HMRC, and solicitors in England and Wales.
Particulars of the gift: A cash gift of £50,000 transferred by Faster Payment from the Donor's HSBC current account (sort 40-00-00, account ending 4521) to the Recipient's Nationwide current account (sort 07-00-00, account ending 8876)
Purpose of the gift: Contribution towards the deposit for the Recipient's first home purchase
The Donor irrevocably confirms to the mortgage lender, its successors, assigns and professional advisers that:
(a) the gift is absolute and need not be repaid;
(b) the Donor has no proprietary, beneficial or equitable interest, and claims none, in the property being purchased or in the mortgage itself;
(c) the Donor will not seek or require any charge, security, restriction or caution over the property;
(d) the Donor waives any right to occupy, possess or enjoy the property; and
(e) this Declaration may be relied upon by the lender without further enquiry.
Witness: Helen Margaret Price — Chartered Accountant
Address: 9 Church Street, Bath BA1 1NP
What Is a Gift Declaration?
A gift declaration is a written statement confirming that a sum of money or an item of property has been given as an outright gift, with no strings attached and no obligation to repay. It identifies the donor, the recipient, the gift, and the terms under which it is given.
Mortgage lenders in the UK routinely require a gift declaration (sometimes called a gifted deposit letter) when a buyer's deposit includes money from a family member or friend. The lender needs confirmation that the money is a genuine gift, not a loan that would affect the borrower's affordability.
UK gift declarations are also important for inheritance tax planning in Britain. HMRC may enquire about lifetime gifts when calculating a deceased person's estate in England and Wales. A clear written record of each gift — including the date, amount, and donor’s intention — simplifies the process and reduces disputes under English law.
What's Covered in This Template
Our gift declaration template covers all the details mortgage lenders and HMRC typically require:
Donor Details
Full name, address, and relationship to the recipient.
Recipient Details
Full name and address of the person receiving the gift.
Gift Description
Amount of money or description of the property or asset being gifted.
Date of Gift
When the gift was or will be made.
No Repayment Clause
Clear statement that no repayment is expected or required.
No Interest in Property
Confirmation the donor will not acquire any interest in the recipient's property (for gifted deposits).
Source of Funds
Where the gifted money comes from, often required for anti-money-laundering checks.
Tax Awareness Statement
Acknowledgement that the gift may have inheritance tax implications.
Donor Signature
Dated signature of the person making the gift.
Witness Signature
Optional witness signature for added evidential weight.
How to Create a Gift Declaration
Follow these steps to produce a clear and accepted gift declaration:
- 1
Identify the Parties
Record the full names, addresses, and relationship of both the donor and the recipient.
- 2
Describe the Gift
State exactly what is being gifted — an amount of money, a vehicle, a piece of jewellery, or other asset — and its value.
- 3
Confirm No Repayment
Include a clear statement that the gift is unconditional and no repayment, interest, or benefit is expected in return.
- 4
State Source of Funds
If the gift is money, note where the funds come from (savings, sale of property, etc.) to satisfy anti-money-laundering requirements.
- 5
Sign and Date
The donor signs and dates the declaration. Having a witness sign adds further credibility.
Legal Considerations
Gift declarations interact with several areas of English law, particularly property, tax, and anti-money-laundering rules.
This template is for informational purposes only and does not constitute legal advice. Consult a qualified solicitor for advice specific to your situation.
Reviewed for England & Wales law
Inheritance Tax (IHT)
UK gifts made within seven years of the donor's death may be subject to inheritance tax under the UK Inheritance Tax Act 1984. The annual exemption allows each British person to give away up to £3,000 per tax year free of IHT. Larger gifts may use the "potentially exempt transfer" rules, where tax liability reduces over the seven-year period under HMRC rules.
Mortgage Lender Requirements
Most UK mortgage lenders require a signed gifted deposit letter confirming the money is a gift, not a loan, and that the donor has no interest in the British property. The letter must usually be from an immediate family member. Some UK lenders will not accept gifts from friends or non-relatives.
Anti-Money-Laundering
UK solicitors and conveyancers are required to carry out anti-money-laundering checks under the Proceeds of Crime Act 2002 and the Money Laundering Regulations 2017. They will need to verify the source of gifted funds in England and Wales, which is why stating the source in the British declaration is important.
Capital Gains Tax
UK gifts of assets other than money (such as property or shares) may trigger a capital gains tax liability. The British donor is treated as having disposed of the asset at market value under HMRC rules. Professional UK tax advice should be sought where valuable assets are being gifted.
Frequently Asked Questions
Document Your Gift Clearly and Legally
Use our free template to create a professional gift declaration in minutes. Ideal for gifted deposits, inheritance planning, and HMRC records.
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