Tax implications of buying a share in a siblings house

[January25]

A friend owns a house that is let out. Tenant has been given notice. The original plan was to sell house and clear mortgage as owner is in her 60s. Her brother is recently separated and older with no home. He has just received his lump sum. He is thinking of offering to buy a half share in the rental which would give him some security instead of renting. The other rooms in the house could then be rented per room and each sibling receive an income in retirement. What are the tax implications of such a transfer - the amount might be 200k.
I’m not sure it’s a good idea to own a home with a sibling. They could end up arguing over bills. What if one gets sick and needs the equity ?

 

[DannyBoyD]

Sounds very messy.

Let Sibling1 pay rent to owner (Sibling2) in the normal way.

Sibling 1 can do rent a room to 14k a year & significantly reduce (or even eliminate) their rental cost & they still have their lump sum.

Sibling 2 continues to get a income & (hopefully) Sibling 1 will take care of minor repairs & reduce hassle.

 

[January25]

Yes it could get messy. Not sure re tax issue.

 

[ClubMan]

He is thinking of offering to buy a half share in the rental which would give him some security instead of renting. The other rooms in the house could then be rented per room and each sibling receive an income in retirement. What are the tax implications of such a transfer - the amount might be 200k.

Not sure re tax issue.

The normal taxes and charges that apply to buying a property - just that in this case it's a 50% share.
E.g. stamp duty on the purchase, conveyancing/legal charges, potential CGT liability for the sister, etc.

Tax issues relating to rental income are a separate issue.