My sister is just coming out the other end of a messy and protracted divorce. She has 3 children and despite many legal actions there's pretty much no hope of getting any support from the ex-husband.
She is currently living with the kids in a small flat but would like to move out to a 3 bedroom house with the kids.
She can afford a 20% deposit from the proceeds of selling the ex-family house (after legal fees) but she can't get a mortgage as she doesn't earn enough for the multiples required by the bank (she works part time as she also needs to look after the kids; 2 jobs, as a nursery nurse and teaching assistant).
I could get a buy-to-let mortgage as I have equity in my home and have 2 other houses I currently rent. I then charge my sister rent which I use to pay the mortgage - making no profit. After the mortgage is paid off I then change the deeds to sign over the house to my sister for free. I know my sister can afford it as the mortgage payments are close to what she currently pays in rent - plus I trust my sister of course.
What are the UK tax implications of doing this? If I sign the house over "for free", is my sister or I liable for capital gains tax?
Are there any implications to my sister giving me the 20% deposit on the house?