I jointly own a buy-to-let property with my father and brother. We have done so for the past seven years. We have a mortgage on it, and the property has increased in value considerably since we purchased it. I wish to remove myself from the mortgage and property ownership so that it will then be owned just by my father and my brother. I wish to receive no monetary value for this departure - the equity will simply remain in the property and belong to those still named on the mortgage. Can you please advise whether I would be liable to pay capital gains tax in this instance, even though I will not be receiving anything in terms of cash?  

Arthur Weller replies:  

When you withdraw from ownership of the property, you are effectively gifting to your father and brother. Additionally, since they are your relatives, this is a transfer to a connected person. If you look at HMRC’s Capital Gains manual at CG14530 it states that you are deemed to transfer to them at market value. So you are making a capital gain, even though you are not receiving any payment.