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Sell My House or Keep It As A Rental?In the UK, allowing family members to live in a second home rent-free can have potential implications for gift tax, inheritance tax (IHT). Yes, unless you are giving them money or vice versa their is no tax implication. You're just being generous. The only time something like this. The gift would be a potentially exempt transfer (PET) and would fall out of charge if you survive for at least seven years from the date of the gift.