I have two properties: one in my name only where I sometimes stay for work and where my parents also reside; the other is my main residence where I live with my husband. I wish to transfer the first property over to my parents. It still has a mortgage on it of £160,000. I brought the property for £325,000 in 2013 with a £100,000 deposit given to me by my parents. I am a higher rate taxpayer. I want my parents to have the property as I only bought it because they were unable to afford it on their income due to being self-employed. My parents have both reached retirement age, but my dad still runs his business. I don't think they could show income to sell to them and thought that adding them onto the property initially and then taking me off it may be the best way to reduce the capital gains tax (CGT) bill that my parents or I would otherwise suffer if I sold for a lower price to them. 

Arthur Weller replies: 

Since your parents gave you the deposit of £100,000 when the property was bought, and as they live there, you have an argument that you are simply the legal owner, and they are the beneficial owners see HMRC’s Capital Gains manual. If this is correct, there should be no CGT if you transfer to them (see CG12704 and CG10720). I would advise you to speak to a tax adviser. If that doesn't work, perhaps you could argue that they at least have 30% beneficial ownership of the property (£100,000/£325,000). Maybe then you could transfer the property to them in stages, using your CGT annual exemption each year. Alternatively, perhaps transfer part of the property first to your husband, and then both of you transfer a part of the property each year.