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Thanks for your question. What is the current value of your property? What was the price you paid when you bought it? What money has been spent on it? What is your age and state of health? If your son and family come to live in this house what would they into doing with the house they have just now?
Thank you for your response. There are two different tax issues here. Firstly if you transfer a half share to your son it will be treated as a potential exempt transfer for inheritance tax purposes. That means that if you survive for seven years following the transaction there will be no inheritance tax to pay by your estate in respect of the value of the property. If you fail to survive for seven years then there will be tax to pay. The amount will depend on the length of time that passes until your death. The second issue is that of capital gains tax. Because the house has not been your own home ther will be a CGT liability based on the current value less the original purchase price and money spent on the house, professional fees etc. Given the substantial increase in value there will be a high level of capital gains tax to pay and there is no way round this. The net gain will be taxed at 28% so that could be a CGT tax liability of around £113,000 even on the half share owned by you over the period. You have to pay this even if there is no money changing hands. Happy to discuss further. I hope that helps. Please leave a positive rating so that I am credited for my time.
If the title is taken as joint tenants then the house will pass automatically to him or your death but the value of your share will still be taken into account for inheritance tax purposes.