Free Gift Declaration Template

GIFT DECLARATION

Inheritance Tax Act 1984  ·  United Kingdom

This Gift Declaration (this "Declaration") is made on 14 March 2026 by Elizabeth Anne Thornton of 8 Riverside Walk, Bath BA1 2QA (the "Donor") in favour of James William Thornton of 14 Orchard Close, Bristol BS3 4PL (the "Recipient"), who is the Donor's Son. This Declaration is made to evidence a gift of property and to satisfy the requirements of any interested third party including (where applicable) a mortgage lender, solicitor, conveyancer, or HM Revenue and Customs.

The Donor declares that on 14 March 2026 the Donor made an outright gift to the Recipient of a monetary sum with an agreed value of £50,000, transferred by bank transfer (BACS / Faster Payment).

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 declares that this transfer is an absolute, outright and unconditional gift of all legal and beneficial interest in the subject matter of the gift. The Recipient has no obligation, whether legal, equitable, moral or otherwise, to repay any part of the gift or to pay any interest or other consideration to the Donor. The gift is made freely and without any expectation of benefit, advantage or return to the Donor. The Donor intends the gift to take immediate effect and to pass full ownership to the Recipient.

For the purposes of sections 102 to 102C of the Finance Act 1986 (gifts with reservation of benefit), the Donor declares that the Donor retains no interest, benefit, enjoyment, right of use, income stream, or control over the subject matter of the gift. The Donor further confirms that, following completion of the gift, the property is enjoyed by the Recipient to the entire exclusion of the Donor and of any benefit to the Donor by contract or otherwise, as required by s.102(1)(b) of the Finance Act 1986.

The Donor declares this gift to be a Potentially Exempt Transfer (PET) under section 3A of the Inheritance Tax Act 1984. The gift shall become wholly exempt from inheritance tax if the Donor survives for seven (7) years from the date of the gift. If the Donor dies within seven years, taper relief may apply to reduce the inheritance tax chargeable in accordance with IHTA 1984 s.7(4) (reducing the tax payable by 20%, 40%, 60% or 80% depending on the number of years between gift and death).

The Donor declares that, as at the date of this gift, the Donor is solvent, is able to pay the Donor's debts as they fall due, and that the making of this gift will not render the Donor unable to do so. The Donor acknowledges that, if the Donor were to become bankrupt within two (2) years of the gift, or within five (5) years where the Donor was insolvent at the time of the gift or became insolvent in consequence of it, the gift may be set aside under sections 339 and 341 of the Insolvency Act 1986 as a transaction at an undervalue. The Donor further confirms that the gift is not made for the purpose of putting assets beyond the reach of creditors within the meaning of section 423 of the Insolvency Act 1986.

The Donor declares that the Donor has full mental capacity within the meaning of the Mental Capacity Act 2005 to make this gift, understands the nature and effect of the gift, and makes it freely and without undue influence, duress, pressure, or coercion from any person. The Donor confirms that the Donor has had the opportunity to obtain independent legal and financial advice in relation to the gift.

This Declaration is provided in connection with a mortgage application with Nationwide Building Society relating to the property at 22 Lime Avenue, Bristol BS6 7HS (loan reference NBS/2026/445128).

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.

The Donor's signature to this Declaration has been witnessed by an independent adult who is not a party to this Declaration, not related to the Donor or the Recipient, and has no financial or beneficial interest in the gift or in any property to which it relates.

Witness: Helen Margaret Price — Chartered Accountant
Address: 9 Church Street, Bath BA1 1NP

The Donor acknowledges, in considering the inheritance-tax position of this gift, that under the Autumn 2025 Budget the inheritance-tax nil-rate band (currently £325,000) and, where applicable, the residence nil-rate band (currently £175,000, tapered for estates over £2,000,000 under section 8FA IHTA 1984), are both frozen until 5 April 2031. In conjunction with the seven-year potentially-exempt-transfer rule under section 3A of the Inheritance Tax Act 1984, the Donor's executors should: (a) include this gift in any IHT400 inheritance-tax account if the Donor dies within seven (7) years of the date of the gift; (b) apply taper relief under section 7(4) IHTA 1984 to the inheritance tax chargeable on this gift where the Donor survives at least three (3) years from the date of the gift; (c) claim any transferable nil-rate band of a pre-deceased spouse or civil partner under section 8A IHTA 1984 (form IHT402, within two years of the end of the month of the Donor's death); and (d) claim the residence nil-rate band on form IHT435 where the Donor's qualifying residential interest passes to direct lineal descendants. Specialist tax advice is recommended where the cumulative value of this gift and any earlier chargeable transfers approaches or exceeds the Donor's available nil-rate band.

This Declaration shall be governed by and construed in accordance with the law of England and Wales. Any dispute arising out of or in connection with this Declaration shall be subject to the exclusive jurisdiction of the courts of England and Wales.