Gifting money to a non-relative to buy a house

[fizio]

Hi - a question on gifting and tax involving a non-family member (ie a close friend). I wish to give them money to buy a house outright. Me estate is worth more than IHT so do I need to declare this gift to hmrc and are there any tax implications for the recipient? Or is it better for me to buy the property myself and then gift him the property - though this seems more complicited.
Appreciate any advice before I take it up with solicitor/accountant etc

[maths]

A gift by you to them is a PET. Thus, no IHT liability arises unless you die within 7 years of making the gift.

Even if you die within the 7 years, depending upon the amount involved it may be that still no IHT liability arises.

In the event IHT does arise the primary liability will be that of your friend.

Cash gift preferable and easier.

[fizio]

thanks maths - though being a 6 figure sum I am not sure about 'cash'

[maths]

If a six figure sum of cash is involved then whether you purchase the property with it or gift the cash to your friend questions will be raised as to its source (re money laundering). If it is all legitimate and provable then either way there should be no problem.

Whether a gift or loan it should all be properly documented on your part for future reference if necessary.

[fizio]

Yes - funds are fully legit in my bank so no issues with money laundering etc and yes will make sure to document appropriately
appreciate your assistance..