Tax implications of sibling gift of share of property?

[Maweras]

My brother and I are joint owners (50/50) of a property, which was bought in 2007 for £500k. The current value is likely £600-700k and outstanding mortgage balance is £300k.

What would be the tax implications of my brother gifting me his 50% share of the property (no money would be changing hands)?

Note my brother left the country over 5 years ago (he lives in Sweden), I have been the beneficial owner since then (paying all the mortgage payments, bills and the like).

Many thanks in advance.

[bd6759]

If you are the beneficial owner, what is your brother gifting to you?

[bd6759]

Also, do/have either of you lived in the property?

[Maweras]

Maybe I'm using the term wrong - from a practical perspective, I own the property in that I live there and pay for the mortgage, council tax, repairs/upkeep and what have you. It is my primary residence and has been since we bought it, it used to be his primary residence as well but hasn't been for the past 5 years since he left the country.

The reason to make the transfer of equity is to enable remortgaging of the property to get a better deal. I am told it is not possible to remortgage as he is not a UK resident.

[maths]

Regarding remortgaging it is legal not beneficial ownership that matters.

Thus changing beneficial ownership will not help.

If his non-residence is a problem then he needs to be removed from the legal title.

[Maweras]

Yes, that is why I want to transfer the equity by way of him gifting it to me, but I need to understand potential tax implications so I can weigh that against the interest rate saving from remortgaging. I understand there'd be stamp duty to pay but I'm unclear on whether there'd be capital gains tax (on me? on my brother).