I own a second home in Nottingham that my son and partner have lived in for 16 months. I have decided to let them buy it from me as I am 61 single and finding it increasingly difficult to manage to live on my smallsavings after giving up my selfemployed work last year through ill health. I don't get any benefits and have no pension. My son will be purchasing it with a mortgage, and I am happy selling it at half the market value, which will give me an income until I receive my state pension at age 66. My question is, will I have to pay capital gains tax (CGT)? The home was gifted to me in a financial settlement owed to me 16 months ago by my ex-partner. 

Arthur Weller replies:
If the property is worth more today than it was 16 months ago when you acquired it, you will have a CGT liability. The fact that you are selling it for half the market value is not relevant; when a gift is made, the tax rules ignore what is paid and use the current market value. However, theirstamp duty land tax liability will be based on what they actually pay you for the property. However, it should be noted that since you are selling at half the market value, you are deemed for inheritance tax purposesto be gifting to them the other half. This will be a potentially exempt transfer; See HMRC’s Inheritance Tax manual at www.gov.uk/hmrc-internalmanuals/inheritance-tax-manual/ihtm14316.