I am hoping to transfer a property that I own (and which my sister lives in) to my sister - as I don't want the IHT liability in my estate. If I do this transfer over a period of a 4 or 5 years (at say 25% ownership transfer to her per year) could I avoid paying CGT on the property? I've been advised by a financial adviser that this is possible through a 'declaration of trust' (or series of declarations of trust). I live in England, but she and the property are both in Scotland.
a. how is it possible to make this transfer legally and without incurring CGT (accepting my allowance is £11k per year)
b. how do I go about doing this - is it a document I can have done by a legal expert once or will I have to pay for a declaration of trust to be drawn up each year?
For info: the property was bought at £75k, now worth £150k but has had £28k worth of improvements spent on it