If a sibling has the family home in Liverpool in her single name (mortgage-free), and she transfers it to include herself and one or two other siblings as joint owners, what are the implications for capital gains tax (CGT) and stamp duty land tax (SDLT) purposes now and further down the line; and for inheritance tax purposes (IHT) when any of them die?  

Arthur Weller replies:  

Any transfer between siblings is deemed to be at market value for CGT purposes (see HMRC’s Capital Gains manual). Let's say the sibling acquired the house for £200,000, and now it is worth £290,000. If she makes two other siblings joint owners together with her, she has effectively given away two-thirds of the house, so her capital gain will be two-thirds of £90,000, which is £60,000. However, if she has lived in the house as her main residence, she will have principal private residence relief to reduce her CGT exposure. If the transfer to the other siblings is a gift for no consideration, there will be no SDLT liability. After the transfer, each one will own one-third of the house, so this will be included in their estate when they die. If the donor sibling does not live for seven years after the date of the gift, the value of the whole house will be included in her estate for IHT purposes.