Readers’ forum: Treatment of payment to family member for home purchase

I have a question on the tax implications of a gift of money towards the purchase of a home. If this money is coming from a joint bank account of parents to an adult child I presume that this would constitute a potentially exempt transfer (PET) and that the seven-year rule will be applicable.

However HMRC’s Inheritance Tax Manual at IHTM04057 stipulates that a transfer must be made by an ‘individual’. If therefore one parent dies before seven years does the gift still qualify as a PET with the surviving parent assuming full responsibility for the original gift which will remain unaffected? Alternatively does this change the gift from being a PET? If so what does that mean for the recipient adult child of the original gift?

Also could readers assist with the tax implications for the parents on giving the money or...