My wife and I live in a £250,000 to £280,000 property in the Midlands. Our daughter and her husband have moved in. We have an outstanding mortgage of £95,000. Basically, we are all going to live in the property together until my wife and I die, but we want to sell it to them, either by paying our mortgage off (so no party except ourselves are involved) and them paying us a mortgage over 25 to 30 years (or until we die) or them raising a mortgage and buying the property at £100,000 below market value. What are the tax positions for us all should we do this? 

Arthur Weller replies:
Since you and your daughter and son-in-law are 'connected persons' for capital gains tax (CGT) purposes this transfer will be deemed to be at present market value (i.e. £250,000 to £280,000), irrespective of how much money they actually pay you. This should not result in any CGT for you to pay, because it is your principal private residence. Their base cost (i.e. the amount they are deemed to have paid) for future CGT purposes will also be the same figure of £250,000 to £280,000. As far as stamp duty land tax (SDLT) for them to pay is concerned, it is dependent on the amount they actually pay. If they are first-time buyers they should pay no SDLT. If they are not, if they do not own any other properties, and pay you less than the £125,000 threshold, there should also be no SDLT to pay.