Notanan2 Ever since Capital Transfer Tax was introduced (now Inheritance Tax) was introduced it has been necessary to keep a record of transfers of capital. Transfers from income are exempt and there are various other exemptions such as gifts on marriage.
If you buy a second house and keep it in your name, I agree, it is not a gift of capital but it will be subject to IHT as part of your estate.
Regular gifts out of income, such as giving your GC an allowance are exempt. Gifts of capital made, provided you survive more than 7 years are also exempt.
The trick is deciding when to start to give away your assets and how much to keep for your own future needs, should you require residential care when older.
The country needs to increase taxation in some form or other. Is it better that income tax is increased which would be a burden for the living, especially the young who are trying to save in order to buy a house, start a family or perhaps start a business? Or is it better that the deceased's estate bears the burden?