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TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15979
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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Me and my sister own a property together and it is our main

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Me and my sister own a property together and it is our main residence, we both have no other properties. The mortgage is paid off. Can I gift my share to her? I assume there will be no stamp duty or capital gains if there is PPR relief. Do I need to tell the HMRC if I gift it?


Assuming that you have lived in the property for the entirety of your period of ownership of it or moved out up to 18 months ago, you can gift your share to your sister and pay no Capital Gains Tax by reason of main residence relief. Take a look at HS283 for more information on that. So long as there no cash exchange or the transfer of a mortgage in excess of £125,000, the stamp duty threshold, you should have none to pay. Take a look here for the stamp duty rules governing property transfer.

You don't need to tell HMRC that you have made a gift but you should keep a record of it. So long as you live for at least seven years after making the gift, its value will not form part of your estate for Inheritance Tax purposes.

I hope this helps but let me know if you have any further questions.

Customer: replied 4 years ago.
Will HMRC know when I gift a property? Would the land registry inform them when a property is transferred? I'm just wondering in case they ask me to prove my residence not to throw my old bills away just yet
HMRC do have access to property databases but they are very cagey about what they see and their sources. I don't know whether The Land Registry inform them directly of property ownership changes or they tap into it of their own accord but they certainly can find out as many people who buy and let property without informing HMRC find out to their cost a few years later.

I really don't envisage you having any problems proving you lived in the property so long as that is the case, especially if you had nowhere else to live but keep the bills just in case.
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