Last updated: 14 October 2026
Will you pay tax if you accept a seaside chalet as a gift?
Not when you receive it. In the UK, there’s no tax on receiving a gift. But the person giving you the chalet may have capital gains tax (CGT) to pay, as a gift is treated as a sale at market value. If they die within 7 years, the gift may count for inheritance tax. And once you own it, you’ll pay income tax on any rent and CGT on any gain when you sell, based on its value when you received it.
Tax for the giver and receiver
| Tax | Who pays | When |
| Capital gains tax | The giver | On the gain since they bought it, based on market value at the date of the gift |
| Inheritance tax | The giver’s estate | If the giver dies within 7 years |
| Income tax | You | On rental income if you let it |
| Capital gains tax on later sale | You | On the gain since you received it |
| Stamp duty land tax | Usually no one | Unless there’s a mortgage you take on, or payment |
Capital gains tax for the giver
The giver is treated as receiving the market value. If the chalet cost £30,000 and is worth £90,000, the gain is £60,000. After the £3,000 annual exemption, CGT at 18% or 24% applies. The giver must report and pay within 60 days if it’s a UK residential property. If the chalet is a caravan or mobile home without the land, it may be a chattel, which has different rules.
Inheritance tax
The gift is a potentially exempt transfer. If the giver lives for 7 years, it’s outside their estate. If they die within 7 years, it’s added back, and taper relief may reduce the tax if they survive at least 3 years. If the giver keeps using the chalet without paying a full market rent, it’s a gift with reservation and stays in their estate.
If you let the chalet
- Rental income is reported on your Self Assessment return
- The furnished holiday lettings regime ended in April 2025, so it’s taxed like other lets
- Site fees, repairs, insurance and cleaning are allowable expenses
- Business rates or council tax may apply depending on how often it’s let
Example
Hannah’s uncle gives her a seaside chalet worth £90,000 in 2026. He bought it for £30,000. He pays CGT on a £57,000 gain after his annual exemption. Hannah pays nothing when she receives it. She lets it in summer and makes £5,000 profit, which she adds to her tax return. If she sells it for £110,000 in 2030, her gain will be £20,000.
Site licences and leases
Many chalets sit on leased land with restrictions on occupation, such as closed seasons. Check the lease before accepting, as there may be site fees and transfer fees.
Frequently asked questions
Do I need to tell HMRC about receiving a gift?
No, unless you let or sell it.
Is SDLT due on a gift?
Not usually, unless you take over a mortgage.
Can the giver use holdover relief?
Only for business assets, such as a qualifying business.
Does a chalet count as a second home for council tax?
It may do, depending on the site.
Related: CGT on a property gift to your daughter, tax on gifted rental properties and gifting money to reduce IHT.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with tax on gifted property. See our small business accountants service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 14 October 2026. It is not personal advice, so speak to an accountant about your own situation.
