Alpesh Patel

Dear HMRC, I am writing to seek guidance on the potential tax implications of transferring property equity to family members. We have a situation involving a mortgage-free property, originally purchased in 1988 for £110,000, with a current value of £700,000. The parents, the original purchasers, intend to transfer 50% of the property's equity to their two children. The property will remain the parents' primary residence while the children reside elsewhere. The children wish to be added to the title as tenants in common, each holding a 25% share. I would appreciate your assistance in understanding the following: Capital Gains Tax (CGT): Considering the property remains the parents' main residence, would there be any CGT liability arising from this transfer? Inheritance Tax (IHT): How would this transfer affect IHT, especially given that the parents will continue to reside in the property? Could this be classified as a "gift with reservation of benefit"? Stamp Duty Land Tax (SDLT): Are there any SDLT obligations that might arise from this transfer, particularly if no mortgage or financial consideration is involved? Other Tax Implications: Are there any other tax considerations or liabilities that should be considered in this scenario? Your expertise in clarifying these issues would be greatly appreciated to ensure compliance with current tax regulations. Thank you in advance for your assistance.