Partner buying into property and want to gift part of the proceeds to my children

Wife passsed away 6yrs ago and 2yrs ago met my fiancee. We are getting married next year. She has sold her house and now moved in and wants to use her proceeds to buy into my unencumbered property (c40% of Mkt Val). Out of the funds generated I want to set aside a pot for my future care (I'm 65) and gift my 2 children c40k each. Where do we stand with the buying in and gifting from a tax perspective. Your guidence would be appreciated.

Hi Kenthewizard,
This would be seen as you 'selling' that sahre of your property so this would be a capital gain if the property has not been your main resident for the whole period of ownership. if it has you dont need to do anything.
For the gift, this amount would be taken into account when working out the value of your estate for Inheritance tax purposes, were you to pass away within 7 years.
Thank you.