Capital gains on selling your share on a joint owned property

I’m trying to figure out if my wife needs to pay any capital gains on selling her share of a property she jointly owns with her brother. The property was bought for £212k on a joint ownership mortgage. Her brother is now remortgaging so that my wife will be off the mortgage. The payout from this will be £50k. She hasn’t lived in the property since mid-2020 and this is not her main home. Am I right in assuming that as the payout is less than what her share is worth, there is no capital gains on it?

Hi Suburbia,
Please refer to guidance:
Report and pay your Capital Gains Tax
Thank you.

Not HMRC...your wife and her brother are "connected parties" as close relatives. If you mean the payout of £50k will be proceeds to remove your wife from ownership of the property then, no, this doesnt mean there is no CGT. In that case your wife would be "selling" to her brother at less than market value, this is not allowed for CGT purposes. Market value would replace the amount received. Your wifes base cost is 50% of £212k, i.e. £106k and her gain is the difference to 50% of the market value on change of ownership. Main residence relief is available for any period it was her only/main residence. If this isnt what you meant and she still retains 50% ownership a payout from a mortgage forms no part of any capital gains calculation, its a method of finance only and is never part of a CGT calculation.