My husband and I left the UK in 2000, and live in another EU country. We left behind two residential properties. One was our home from 1993 until 2000. From 2000 until now it is let to a housing association and we get rent paid monthly. We bought it for £75,000 and its now worth £350,000. The other house was bought in 1999 with three names on the deeds, i.e. me, my husband, and my father. He also emigrated here, in 1999, when he retired. This house was bought in 1999 for £110,000 and is now valued at £340,000. We want now to either sell it on the open market or give/sell it cheaply to my daughter, who has lived there for the past four years.  What tax implications do we face? What is our best option bearing in mind she stands to inherit the property or any other that we buy anyway. We want to sell now to buy out my father.

Arthur Weller replies:
If all three of you are now considered non-UK resident according to the statutory residence test, and have been for five complete tax years, then you can dispose of the property to someone else, or to your daughter, without any UK capital gains tax to pay. If she pays more than £125,000 then there will be stamp duty land tax for her to pay. For disposals after 5 April 2015, any increase in value from 5 April 2015 until the date of disposal will be taxable for non-UK residents, as far as we understand presently (it hasn't been finalised yet). If your father gifts away his portion and dies within seven years, then this will be called a failed potentially exempt transfer, and will be included in his estate for inheritance tax purposes when he dies.