What are the tax consequences in the above scenario please?

Arthur Weller replies:
The sale of this property will be subject to the same capital gains tax rules as for any other property; it makes no difference that the proceeds go to your three children. However, gifting money to your children will be potentially exempt transfers (PET's) with regard to the inheritance tax (IHT) rules. Therefore, if you live for seven years after the date of the gifts, there will be no IHT consequences. But if you don't, the amount of the gift will be treated as included in your estate for IHT calculation purposes.