Gift of a property from a UK Non Resident

[tax-bill]

My client is a UK national who has been non resident for 10 years. He has just bought and gifted a 200K flat in the UK to his daughter. The flat is tenanted and she receives the income which will be subject to tax under self assessment.
1) Are there any other potential tax implications - such as IHT if my client dies within the next 7 years.
2) Does the position change if my client returns to the UK
3) Should either my client or his daughter document the gift with HMRC
Any input would be gratefully received.

Tax-Bill

[maths]

My client is a UK national who has been non resident for 10 years. He has just bought and gifted a 200K flat in the UK to his daughter. The flat is tenanted and she receives the income which will be subject to tax under self assessment.

1) Are there any other potential tax implications - such as IHT if my client dies within the next 7 years...........the gift is a PET for IHT purposes. Death of donor within 7 years may precipitate an IHT charge at 40% if nil rate band of donor has been exhausted.


2) Does the position change if my client returns to the UK........not re the potential IHT charge.

3) Should either my client or his daughter document the gift with HMRC........No, not necessary. Probably a good idea to simply have a letter to daughter stating that dad has made a gift.