I took out a mortgage in 2010 to buy my daughter a property in Liverpool for her to live in. Both our names are on the title deeds. The property is now mortgage-free. I would like to take my name off the deeds so that my daughter is the sole person on the deeds. No money will change hands. Would there be any tax implications? 

Arthur Weller replies:  

For capital gains tax (CGT) purposes, the tax legislation treats a gift as a disposal at present market value, even though no money changes hands. You should obtain a written market valuation at the transfer date and keep purchase, solicitor, stamp duty land tax, or improvement cost records for your CGT computation. It may be worth your while speaking to a tax adviser to explore the possibility of your being able to show that you never had any beneficial ownership in the property, and therefore CGT should not apply. There is no SDLT where the transfer is a gift with no consideration and no mortgage to take over. With regard to inheritance tax, the transfer is a ‘potentially exempt transfer’. If you survive for at least seven years, the transfer falls out of your estate. Again, if you could show that you never had beneficial ownership in the property, it would make a significant difference.