Tax implication of selling share of home to child

[Steve from Durham]

Hi all, I wonder if I could ask your advice please.

My wife and I have a property worth approx. £170K and a joint mortgage of £63K. We are considering selling a 50% share of our property to our daughter. Upon sale our daughter would move in and we would move out (we are buying another home). At some point in the future we expect our daughter would either a) buy us out, or b) sell the property.

What would be the tax implications, if any, for my wife and I and our daughter at the point the property is sold?

From many hours research today the best I can conclude is that our daughter would not be liable for CGT as the property is her principle residence but will be liable for CGT on our share if the gain exceeds our allowances. Is this correct and are their any other tax implications?

Many thanks.

[pawncob]

No CGT due from daughter as it's her PPR.

Assuming it's your PPR, no CGT due on sale of half. May be some due on sale of second half as your new property will become your PPR from date of occupation. Depends on time scale and values.

[Peter D]

If she buys you out within 3 years there will be no CGT liability. Read HS283 on the HMRC web site. Regards Peter