I own a house on my own, which was purchased in 1985 for £12,000. I lived there with my children until 2001. My children remained in the property until I rented it to tenants in 2007. This continued until 2011, when my daughter returned to the property as a full paying tenant. My daughter would now like to buy the property but cannot afford to, so I am wondering if I can sell half to her and set up a rental agreement for the other half. This would help my daughter to part own a property and also give me the capital to pay off the mortgage on the property I own and reside in with my partner. The rental property is currently valued at £220,000. Please advise if the above is possible, how we go about it, and the tax implications. Currently, I no longer pay tax as I am retired and under the tax threshold with rental income and an extremely small private pension and under state pension age.

You can do as you have written. Selling half your house to your daughter will trigger a capital gains tax liability for you, but you will have a certain amount of principal private residence relief to reduce the gain because you lived in the house for part of the period of your ownership. Also, since you rented out the house you are eligible for a certain amount of 'lettings exemption' to reduce the gain. Your daughter will have to pay stamp duty land tax (SDLT) on the half of the house she is buying from you.