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The short answer
If you are UK resident and give Nigerian land to your son or daughter, UK capital gains tax treats it as a disposal at market value on the date of the gift, so you can owe tax on a gain even though no money changes hands. Your child takes the land at that same market value. For inheritance tax, the gift only matters if you are a long-term UK resident; then it becomes tax-free if you survive seven years.
Parents often want to pass a plot in Abuja or a family house in Benin City to a child while they are alive: to avoid a fight among siblings later, to let the child build, or simply to see it settled. From a UK tax point of view, a gift is not a non-event. Two taxes look at it, and they ask different questions.
CGT: a gift is treated as a sale at market value
GOV.UK lists giving an asset away as one of the ways you dispose of it, and its market value page says that for gifts you use the market value on the date of the gift instead of a sale price. Only gifts to a husband, wife or civil partner you live with, and gifts to charity, are free of CGT, according to GOV.UK's page on gifts. A gift to a child is not on that list.
So the computation looks just like a sale: market value at the date of the gift, converted to pounds at that date's rate, minus your cost converted at the rate when you bought. HMRC's CG78310 sets out that each figure is converted at its own date. For a full worked computation of a sale, see working out a Nigerian land gain in pounds.
Worked example (illustrative)
| Naira | Example rate | Pounds | |
|---|---|---|---|
| Cost, plot bought 2013 | ₦5,000,000 | £1 = ₦250 | £20,000 |
| Market value at gift, 2026 | ₦64,000,000 | £1 = ₦2,000 | £32,000 |
| Gain | £12,000 | ||
| Less 2026-27 annual exempt amount | £3,000 | ||
| Taxable gain | £9,000 | ||
| Tax at 18% (within basic rate band) | £1,620 | ||
| Tax at 24% (higher rate) | £2,160 |
The parent pays this from their own pocket, because the child paid nothing. That is the main practical trap. Get a written valuation from a registered estate surveyor in Nigeria dated close to the gift, because the value you use will be the one HMRC may later question.
What your child inherits for tax purposes
In general, the market value you are treated as disposing at becomes your child's acquisition cost, so in the example their starting point would be ₦64,000,000 at the 2026 rate, or £32,000. If they later sell while UK resident, only the growth in sterling from that point would be their gain. Confirm this with HMRC guidance or an adviser before relying on it, and give your child a copy of the valuation and the rate you used.
GOV.UK also says HMRC can check your valuation. After the disposal you can send form CG34, the post-transaction valuation check, to the address on the form; allow at least 3 months for a reply. That is worth doing for a large plot, because it settles the figure for both you and your child.
Inheritance tax: only if you are a long-term resident
Land in Nigeria is a non-UK asset. HMRC's manual on people who are not long-term UK residents (IHTM47030) treats the giver's status immediately before the transfer as the test: if you are not a long-term UK resident at that moment, a gift of foreign land is outside UK inheritance tax. If you are (UK resident for 10 of the previous 20 tax years, under IHTM47020), the gift is treated like any other lifetime gift.
GOV.UK's gift rules then apply. A gift to a child is usually tax-free if you live for seven years after making it. If you die within seven years and your gifts total more than the £325,000 threshold, tax can be due, at 40% for gifts within three years of death and on a sliding scale (32%, 24%, 16%, 8%) for gifts made three to seven years before. The £3,000 annual exemption can reduce the value of the gift. See the 10-of-20-year test and gifts and the seven-year rule.
| Your status at the time of the gift | UK CGT | UK inheritance tax |
|---|---|---|
| UK resident, not long-term resident | Due on the market-value gain | Outside scope for Nigerian land |
| UK resident and long-term resident | Due on the market-value gain | Potentially taxable gift; seven-year rule |
| Not UK resident (and not temporarily non-resident) | Generally not due | Depends on whether you are still in the long-term residence tail |
Nigerian side of the transfer
The gift must also be valid in Nigeria. That usually means a deed of gift or assignment, stamping, and, in states that require it, the Governor's consent and registration. For how consent works in Lagos, read Governor's consent for diaspora buyers; for whose name should go on the title, see whose name goes on Nigerian property. Whether Nigerian tax arises on a gift is a question to put to a Nigerian lawyer or adviser; we could not confirm the position from an official page.
Steps before you sign
- Get a dated Nigerian valuation and note the exchange rate for that date.
- Work out the sterling gain and the tax, and set money aside to pay it.
- Check your long-term residence status for inheritance tax on the date you plan to give.
- Have the deed prepared and registered properly in Nigeria.
- Report the gain on your Self Assessment return for the tax year of the gift.
- Keep a file for your child with the valuation, rate and deed.
Questions people ask
Do I pay CGT if I give my son land in Nigeria?
If you are UK resident, usually yes. GOV.UK treats a gift as a disposal at market value, so tax is due on the gain even though you received nothing.
Is gifting land to my wife free of CGT?
GOV.UK says gifts to a husband, wife or civil partner you live with are free of CGT. She takes over your original cost.
Can HMRC agree the value of the land I give?
Yes. GOV.UK says that after the disposal you can ask HMRC to check the valuation using form CG34; allow at least 3 months for a response.
Does the seven-year rule apply to Nigerian land I give away?
Only if you are a long-term UK resident when you make the gift. Otherwise the land is outside UK inheritance tax.
Sources
- GOV.UK: Capital Gains Tax, market value (updated 2 Oct 2026) · accessed Oct 2026
- GOV.UK: Capital Gains Tax, gifts to your spouse, civil partner or charity (updated 2 Oct 2026) · accessed Oct 2026
- HMRC Capital Gains Manual CG78310: computing gains on assets bought and sold in foreign currency (updated 22 Oct 2026) · accessed Oct 2026
- GOV.UK: Capital Gains Tax rates and allowances (updated 2 Oct 2026) · accessed Oct 2026
- HMRC Inheritance Tax Manual IHTM47030: not a long-term UK resident (updated 7 Apr 2026) · accessed Oct 2026
- GOV.UK: Inheritance Tax, gifts · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.