Readers' forum : Property pitfalls

My client owns a rental property that he acquired some years ago and which is standing at a gain. He would like to give a half-share to his sister (or to his sister and her husband) but naturally would like to do this without incurring a capital gains tax liability because he will not receive consideration. I cannot see that the gain can be held over to avoid an immediate liability so can readers make any other planning suggestions here?

One idea was to transfer the property into a trust with the sister and husband as beneficiaries. But I believe this would prevent them claiming main residence relief if as I believe they will they live in the property.

My only other idea is that my client transfers the property in smaller shares say a 5% interest annually for ten years. Would this work?...