We are a married couple and live in a property with our daughter and son-in-law on a joint mortgage basis. We all live in the property, and it is everyone’s main residence. We want to transfer our 50% share of the property to our daughter and son-in-law. It is valued at £300,000. We will be moving into a new property in July and our daughter and son-in-law are contributing £40,000 to help us with the move. Will any of us be liable to CGT?
Arthur Weller replies:
Assuming that you have lived in the property as your main residence all the period of your ownership, then you are eligible for principal private residence (PPR) relief from capital gains tax (CGT) on this transfer, and so there is no CGT liability. It does not make a difference that your daughter and son-in-law also own half the property and live in it as their PPR. Regarding your daughter and son-in-law, they are 'recipients', so CGT does not apply to them.