We wish to gift 50% of our property in Bristol to our grandson, adding his name to the property deeds. What are the tax implications for all parties?  

Arthur Weller replies:  

Since you are disposing of part of your property to your grandson, this is a disposal to a connected person, and deemed to be at today's market value. If it is worth more now than it was when you acquired it, there will be a capital gain. However, if it is your main residence, and you have lived in it for all the period of your ownership, you will be eligible for principal private residence relief from capital gains tax. Since you are gifting (i.e., transferring for no consideration), your grandson will not pay any stamp duty land tax. But this may result in him losing his first-time buyer's relief from stamp duty land tax (see HMRC’s Stamp Duty Land Tax Manual at SDLTM29800). If you currently live in the property, and you will continue to live in the property after the gift rent-free, then according to the inheritance tax rules this will be a ‘gift with reservation’.