As an unmarried couple, we bought our existing property 16 years ago. Whilst I contributed a large capital sum towards the purchase, the property was taken out in my partner’s name only, as she was transferring an existing mortgage and I was starting up a business with irregular income. We are now unencumbered. We are both in the throes of making out mirror wills, leaving all our assets to the other (or to our 17-year-old son, if she or I pre-decease the other). I now realise that both my son and I are very much tax exposed and may well have to sell our home in order to pay inheritance tax, if his mother should die before I do. I would welcome your advice as to the best course of action to take in order to rectify the situation.

Arthur Weller replies:
Your partner could transfer half the house to you now. There would be no capital gains tax on this transfer because it would be covered by principal private residence relief. If she lived for seven years after the gift, there would be inheritance tax on the transfer. Alternatively, you could decide to get married now. Thirdly, maybe you want to consider discussing the matter with a tax adviser and maybe he could establish whether you have half the beneficial ownership in the property as per HMRC’s guidance at www.gov.uk/hmrc-internal-manuals/capital- gains-manual/cg70230,www.gov.uk/hmrc-internal- manuals/capital-gains-manual/cg22020, and www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg65310 (although these last two discuss spouses).