Tax on Cash Gift for House Deposit

Hi all, I am a first time house buyer with a £40,000 deposit consisting of £20k of my own money and £20k cash gift from a relative. I have a question regarding that £20,000 cash gift from my grandad and whether I'll need to pay inheritance tax on it should be pass away within 7 years. I'm aware of the 7 year rule on cash gifts and inheritance tax, but in all honesty he likely doesn't have that long left. His total estate is around £380k. I've tried googling but there isn't a clear cut answer I can find. Any help appreciated!

Hi

Your grandfather is the person who needs to record the gift for inheritance tax purposes.  If he should pass away within 7 years of making the gift, then the gift is included in your grandfather's estate for inheritance tax purposes.  
Please have a look at How Inheritance Tax works: thresholds, rules and allowances.

Thank you