Seagull
If your partner has lived in the other property as her main residence throughout, there is no CGT on this sale.
The sale of half your property is a chargeable transfer for CGT purposes at open market value (as you are connected persons/the transfer is not at arm's length). However, if you have lived in the property as your main residence throughout ownership, you have a 100% entitlement to Principal Private Residence (PPR) Relief, and no CGT charge will arise.
If you are transferring your share in the property at market value, no Inheritance Tax (IHT) implications arise. If there was any element of gift, this would be treated as a Potentially Exempt Transfer (PET) for IHT purposes. No tax would arise assuming that you survived for 7 years.
There would be stamp duty at a rate of 1%. This could be avoided if you gifted the property, and your partner made an unconnected gift'.
If you require any further assistance please do not hesitate to contact us, and we will be happy to act on your behalf.
Nigel Lord
Lord Associates
Taxation & Business Consultants
Caxton House
Old Station Road
Loughton
Essex, IG10 4PE
020 8418 9101 & 07769 931852
mail@lordassociates.co.uk