Can I gift my half of a house to my brother tax-free? I do not live there, but I do not have my name on any other property. The house was gifted to us years ago by our father. There is no mortgage. The house is probably worth £40,000 more now than when it was purchased. 

Arthur Weller replies  

If you make a gift to someone, capital gains tax (CGT) rules deem it as though you sold to them at today’s market value. See HMRC’s Capital Gains Manual at CG14530. You state that the house is worth about £40,000 more now than when it was purchased. It is not clear to me whether you mean: (a) £40,000 more than when your father (who gifted it to you and your brother) purchased it; or (b) £40,000 more than when your father transferred it to you and your brother. The bottom line is that you need to look at its market value when your father transferred to you (say, £X). If it is worth more today than £X, then this difference (say, £Y) is potential capital gain, and if you transfer your half to your brother, you need to pay CGT on half of £Y (less your CGT annual exemption, if you haven’t used it).