A new client of mine (single person), for family and cash flow reasons, gifted his mortgage free Principal Private Residence to his mother 8 years ago . The MV was then £450K. He continued to live there without paying any market rent and/or any other form of contributions to his mother. He did not have to pay any CGT 8 years ago as the asset was an "Exempt Asset". He is in a poor state of health and he could pass away within next 2 years. What is the Inheritance Tax situation please ? Am I correct in assuming that "Surviving for 7 years" is red herring as the gift made 8 years ago failed due to anti avoidance rules of "Gifts with reservation of benefits". Making matters more complicated, his mother intends to sell the property now as she is the legal owner and registered as such at Land Registry. Will this make any difference to his Inheritance Tax situation arising, say in 18 months time ? With house sold (current MV £850K), he will move to his brother's home and with "Rewards and Benefits" attached to the original gift all ceasing.