My father is considering gifting the property in London that my partner and I, and our children are currently living in. My father is non-UK domiciled, and both my partner and I are resident in the UK.  

We would like to know: 

1. What taxes are liable (for all parties) if my father gifts the property to me?  

2. What taxes are liable (for all parties) if my father gifts the property to me and my partner?  

3. What taxes are liable (for all parties) if the property is gifted to me and, subsequently, I decide to share ownership or equity in the property with my partner?  

Arthur Weller replies:  

In all cases, your father will be liable to capital gains tax (CGT) if the current market value of the property is more than what he paid for the property. If he is not UK resident (not the same definition as 'non-UK domiciled’), he will be liable to UK CGT on the increase in value from April 2015 onwards only. If there is no mortgage on the property, so no transfer of responsibility for the mortgage, there will be no stamp duty land tax for you (the recipients) to pay. If, soon after receiving the property as a gift, you share ownership with your partner, there should be no CGT for you to pay. The reason is that when you receive it, you are deemed (for CGT purposes) to have paid market value for it, so if you transfer it (or half of it) to your partner soon afterwards, it will not have increased in value (or hardly increased), hence no CGT. See HMRC’s Capital Gains Manual.