Gift from father to son

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Grandad wants to gift a house (not main resident)

No CGT, just change PPR (a couple of mains ago) was main resident.

Your grandfather currently has mental capacity?

Is the house that your grandfather wishes to gift the house where he currently resides and intends to continue to reside? Or is it not his main residence?

If it is, will he be paying rent to his son?

You have looked into Deprivation of Assets should he ever need means tested care?

Assuming that it is his PPR, then CGT will not be a consideration for Grandfather.

However, (unless he pays full market rent which the son would have to declare ), it will be a gift with reservation so will still be part of his estate for IHT purposes.

The son would also become his landlord so would have to comply with the relevant regulations.

If it is not Grandfather's PPR, then there is a question of his liability for CGT.

If it will not be the son's PPR then he will need to consider CGT when he comes to sell.

There would be nothing to prevent you grandfather stating his reasons for making the gift in a letter witnessed by his solicitor.