New queries, issue 4673

Family first

Transferring part ownership of property to family member.

I have a client who bought the family home some years ago. It was purchased by the client his wife and his daughter in one-third shares.

The parents and the daughter’s family have occupied it as their only or main residence since acquisition.

The mother and father each wish to transfer one-half of their share in the property to their daughter but the two families will continue to occupy it.

The market value of the one-third share the parents wish to transfer is £400 000. They are considering two options. First they could make an outright gift to their daughter. Alternatively they could each make a gift of £200 000 to her and she could buy a one-third share from her parents.

In either scenario I believe that only or main residence relief for...