Deed of gift template

Last reviewed: 30 July 2026

A deed of gift is a formal document, executed as a deed and witnessed, that records an outright gift of money or another asset from one person to another. It names the donor and recipient, states the amount, confirms the gift is unconditional and not a loan, and confirms the donor keeps no interest in it. For a mortgage deposit a lender usually only needs a shorter gifted deposit letter or its own form, so check which your lender wants before using a deed.

DEED OF GIFT
(gift of money, for example towards a property deposit)

This template is general information, not legal advice. A deed of gift is a
formal legal document. Have a solicitor confirm the wording and witness the
signing before you rely on it. If the gift is for a mortgage deposit, your
lender or conveyancer may want their own gifted deposit form or letter as well.

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THIS DEED OF GIFT is made on [DD/MM/YYYY]

BETWEEN:

(1) THE DONOR: [Donor's full name] of [donor's full address]
    ("the Donor"); and

(2) THE RECIPIENT: [Recipient's full name] of [recipient's full address]
    ("the Recipient").

BACKGROUND:

The Donor wishes to make an outright and unconditional gift of the money
described below to the Recipient, and to record that gift as a deed.

THE DONOR AND THE RECIPIENT AGREE AS FOLLOWS:

1. THE GIFT
   The Donor gives to the Recipient the sum of £[amount]
   ([amount in words] pounds) ("the Gift").

2. PURPOSE (optional)
   The Gift is intended to be used towards [for example: the deposit for the
   purchase of the property at [full property address]]. The Recipient is
   under no obligation to use it for this purpose.

3. UNCONDITIONAL AND NON-REPAYABLE
   The Gift is an absolute, unconditional gift. It is not a loan. No repayment,
   interest or consideration of any kind is expected or required, now or in the
   future.

4. NO INTEREST RETAINED
   The Donor keeps no interest, share, charge or right of any kind in the Gift
   or in any property or asset the Recipient buys with it, and the Donor will
   not live in any such property unless a separate arrangement is agreed in
   writing with the relevant lender.

5. THE DONOR'S POSITION
   The Gift comes from the Donor's own funds, held at [bank or building society].
   Making the Gift does not leave the Donor unable to meet their own debts and
   commitments. The Donor is not bankrupt and is not aware of any insolvency
   proceedings or claims against them.

6. SOURCE OF FUNDS
   The Donor will, if asked, provide photo ID, proof of address and bank
   statements so the Recipient's solicitor or lender can complete
   anti-money-laundering source-of-funds checks.

7. TAX
   The Donor understands that a gift can have inheritance-tax implications for
   their estate (the seven-year rule and available exemptions) and that this is
   a matter for GOV.UK guidance or a tax adviser, not for the Recipient.

EXECUTION

Executed as a deed by the Donor:

Signed as a deed by [Donor's full name]

Signature: ______________________   Date: [DD/MM/YYYY]

in the presence of:

Witness signature: ______________________
Witness full name: ______________________
Witness address: ______________________
Witness occupation: ______________________

(The witness should be an independent adult, not the Recipient and not a member
of the Donor's household or family, and should watch the Donor sign.)

Acknowledged by the Recipient:

Signature: ______________________   Date: [DD/MM/YYYY]
Full name: [Recipient's full name]

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mortgageexplained.co.uk : information, not advice. We introduce you to a
regulated mortgage broker who can advise on the mortgage itself.

Deed of gift or gifted deposit letter?

These two documents overlap, so it helps to know which you actually need. For a straightforward cash gift towards a mortgage deposit, most lenders and conveyancers only want a short gifted deposit letter, or the lender's own gifted deposit form. A deed of gift is a more formal instrument, executed as a deed and witnessed, that some solicitors prefer for larger gifts, for gifts of property or a share of a property, or when a formally executed record is wanted for estate-planning reasons. Ask your broker or solicitor which they need before you prepare anything: a deed is not a substitute for a lender's own paperwork.

Check this first

This template is general information, not legal advice. A deed of gift has legal effect, so have a solicitor confirm the wording and witness the signing. If the money is for a mortgage deposit, the lender may still require its own gifted deposit form or letter in addition to, or instead of, a deed.

The template

DEED OF GIFT

(gift of money, for example towards a property deposit)

THIS DEED OF GIFT is made on [DD/MM/YYYY]

BETWEEN:

(1) THE DONOR: [Donor's full name] of [donor's full address] ("the Donor"); and

(2) THE RECIPIENT: [Recipient's full name] of [recipient's full address] ("the Recipient").

BACKGROUND: The Donor wishes to make an outright and unconditional gift of the money described below to the Recipient, and to record that gift as a deed.

THE DONOR AND THE RECIPIENT AGREE AS FOLLOWS:

The gift. The Donor gives to the Recipient the sum of £[amount] ([amount in words] pounds) ("the Gift").
Purpose (optional). The Gift is intended to be used towards [for example: the deposit for the purchase of the property at [full property address]]. The Recipient is under no obligation to use it for this purpose.
Unconditional and non-repayable. The Gift is an absolute, unconditional gift. It is not a loan. No repayment, interest or consideration of any kind is expected or required, now or in the future.
No interest retained. The Donor keeps no interest, share, charge or right of any kind in the Gift or in any property or asset the Recipient buys with it, and the Donor will not live in any such property unless a separate arrangement is agreed in writing with the relevant lender.
The Donor's position. The Gift comes from the Donor's own funds, held at [bank or building society]. Making the Gift does not leave the Donor unable to meet their own debts and commitments. The Donor is not bankrupt and is not aware of any insolvency proceedings or claims against them.
Source of funds. The Donor will, if asked, provide photo ID, proof of address and bank statements so the Recipient's solicitor or lender can complete anti-money-laundering source-of-funds checks.
Tax. The Donor understands that a gift can have inheritance-tax implications for their estate (the seven-year rule and available exemptions) and that this is a matter for GOV.UK guidance or a tax adviser.

EXECUTION

Signed as a deed by [Donor's full name]
Signature: ______________________ Date: [DD/MM/YYYY]

in the presence of:
Witness signature: ______________________
Witness full name: ______________________
Witness address: ______________________
Witness occupation: ______________________

Acknowledged by the Recipient:
Signature: ______________________ Date: [DD/MM/YYYY]
Full name: [Recipient's full name]

The witness should be an independent adult, not the recipient and not a member of the donor's household or family, and should watch the donor sign.

Why lenders and solicitors want each clause

Gift, not loan. A loan is a financial commitment that reduces how much the buyer can borrow, so lenders need certainty there is no repayment in any form.
No interest in the property. Someone with a stake but no name on the mortgage complicates the lender's security if the home is ever repossessed, which is why the donor confirms they keep nothing back.
Donor details and relationship. Most lenders prefer gifts from close family, so the deed records who the donor is and where the money sits.
Source of funds. Anti-money-laundering rules require the solicitor to trace where the money actually came from, so the donor should expect to show ID and statements.
Solvency. Confirming the gift does not leave the donor unable to pay their own debts protects the purchase from being unwound if the donor later becomes insolvent.

Gifts and inheritance tax

A deed does not change the tax position, and signing one is not a way around inheritance tax. What matters is timing and allowances. GOV.UK's guidance on gifts (checked 30 July 2026) states that no inheritance tax is due on a gift if the person giving it lives for 7 years after making it. Each tax year you can also give away up to £3,000 in total under the annual exemption, and separately as many small gifts of up to £250 per person as you like. Wedding or civil-partnership gifts are exempt up to set limits (£5,000 to a child, £2,500 to a grandchild or great-grandchild, £1,000 to anyone else). If the giver dies within 7 years, gifts made between 3 and 7 years before death can attract taper relief. These are the donor's own tax matters: for anything beyond the basics, see the GOV.UK link below or a tax adviser, not a mortgage one.

Where this fits with your mortgage

If the deed is funding a deposit, the mortgage side still needs its own evidence. See the gifted deposit letter template for the shorter declaration most lenders accept, the fuller guide to gifted deposits for how lenders treat gifts against loans, and the bank of mum and dad for the wider picture of family help. You will also need the standard paperwork in the documents needed for a mortgage checklist. This page is information, not legal or tax advice, and we introduce you to a regulated mortgage broker who can advise on the mortgage itself.

Common questions

What is the difference between a deed of gift and a gifted deposit letter?

A gifted deposit letter is a short signed declaration that a lender and conveyancer accept as proof that deposit money is a gift. A deed of gift is a more formal document, executed as a deed and witnessed, that records the gift itself. For a straightforward mortgage deposit the lender usually only needs a letter or its own gifted deposit form. A deed is sometimes preferred for larger gifts, for gifts of property or a share of property, or when a solicitor wants a formally executed record for estate-planning reasons.

Does a deed of gift need a witness?

Yes. To take effect as a deed, the document must make clear it is intended as a deed, and the person giving the gift signs it in the presence of a witness who then signs too. The witness should be an independent adult, not the recipient and not someone from the giver's own household. A solicitor can confirm the signing is done correctly.

Does a deed of gift avoid inheritance tax?

No. Signing a deed does not change the tax position. What matters is the seven-year rule: GOV.UK says no inheritance tax is due on a gift if the person giving it lives for 7 years after making it, and there are set allowances such as the £3,000 annual exemption. A deed simply records the gift clearly; it is not a way around tax. Ask a tax adviser or check GOV.UK for the donor's own position.

Will the solicitor still need proof of where the money came from?

Yes. Anti-money-laundering rules mean the recipient's solicitor will usually ask the person giving the money for photo ID, proof of address and bank statements showing the source of the funds. Warning the giver about this early avoids a delay at the conveyancing stage, whether you use a deed or a letter.

Adam Parker

Founder, MortgageExplained

Adam spent nearly a decade as a mortgage adviser at Just Mortgages, with further experience in commercial finance. He is CeMAP and CF qualified. He built MortgageExplained to do one thing well: explain mortgages in plain English, then introduce you to a regulated broker when you are ready. Every page is written and reviewed by Adam.