I am single and I currently own a number of buy-to-let properties in Yorkshire. The value of my assets is over £500,000, and one of the properties is valued at £240,000. Can I gift this property (debt-free) to my nephew over a seven-year-period, and what would the tax implications be to myself and my nephew?

Arthur Weller replies:
You can gift this property over a seven-year period, presumably about 14% per year. You would need to calculate the capital gain on the whole house each year and take 14% of this figure. You would have a capital gains tax (CGT) annual exemption each year to reduce the taxable gain. The remaining gain would obviously be subject to CGT. There would be no stamp duty land tax (SDLT) for your nephew to pay, because the transfers are gifts for no consideration. But if afterwards he would want to buy his first home, he would not be eligible for the new SDLT first-time buyer exemption, because he already owns (part of) a property. See Chapter 3 of HMRC’s guidance at: www.gov.uk/government/uploads/system/uploads/attachment_data/file/661728/8274_guidance_note_SDLT_relief_ for_first_time_buyers.pdf.