There is an annual allowance of £12,300. Any gain above this is taxed at 18pc for a basic-rate taxpayer or 28pc for a higher-rate taxpayer. 

In the vast majority of cases CGT is not payable on gifts to a husband, wife, civil partner or charity, although there are a handful of exceptions. 

Stamp duty

Stamp duty is only payable by the receiver of the gift if the property has a mortgage attached to it. 

If it does, the recipient, for example your daughter or son, will have to pay stamp duty on the outstanding value of the mortgage. 

If the recipient already owns property – or in some cases, if the “buyer” and “seller” are married – stamp duty will be levied at the surcharge rate, which is three percentage points above the normal rate for the relevant band. 

Make sure the lender knows about the gift, too, warned Nimesh Shah, a partner at accountancy firm Blick Rothenberg. 

“You’ll need to check with the bank that you can give it away. Check the terms of your mortgage, because the lender may want to check that the person you’re giving the property to can afford the repayments,” he said. 

Income tax

When a rental property is given to a child who is under 18, the person who gave it away is still taxed on any rental income, even if that income technically goes to the child. 

This will change when the child comes of age and does not apply if the person receiving the gift is an adult, whatever their relationship to the giver. 

Inheritance tax

Inheritance tax is not payable on estates left entirely to a spouse, civil partner or charity.

For other loved ones, property gifts count as a “potentially exempt transfer” under the inheritance tax rules. This means they can be made inheritance tax-free as long as the giver lives for seven years afterwards. 

After three years the tax amount falls – by eight percentage points each year from the full rate of 40pc – until the eighth year, after which the property is out of the previous owner’s estate for tax purposes.