Does giving my home to my children reduce inheritance tax?

Making an outright gift of your home may help reduce inheritance tax if certain conditions are met. To be effective, the gift generally needs to be made without continuing to benefit from the property. For example, if you give your home to your children but continue living there rent free, it may still be treated as part of your estate for inheritance tax purposes under the gift with reservation rules (GOV.UK). It's also important to consider other tax consequences, as well as the wider impact on you and your family.