Iron that is for gift (7)
I believe the answer is:
pressie
'for gift' is the definition.
(short for 'present')
'iron that is' is the wordplay.
'iron' becomes 'press' (I've seen this in another clue).
'that is' becomes 'ie' (abbreviation for id est, 'that is' in Latin).
'press'+'ie'='PRESSIE'
(Other definitions for pressie that I've seen before include "Something freely given" , "Gift (colloq.)" , "Informally, offering" .)