Joint Tenants to Tenants in Common

Years ago my wife and I bought a house and we also put my daughter name on it as Joint tenants. Years later my daughter bought her own house as her main home. We have been told by a solicitor that we can severe the Joint Tenants agreement on the title deeds and replace it with Tenants in Common with the ownership set at 49% in my wife, 49% to me and 2% to my daughter. By making the above changes will there be any capital gains tax due please? If there is no capital gains tax for this change at moment, when the property is sold will any capital gain arise be taxed according to the tenants in common split? Thanks.

Hi,
As they are effectively gifting 1% each of the property to their daughter, they are deemed to be making a disposal at market value so CG could potentially be due.  Refer to
CG12920 - Gifts and Capital Gains Tax: introduction - HMRC internal manual - GOV.UK (www.gov.uk)- If they sell the property as tenants in common the gain is allocated & taxed based on each owners share.