Gift Tax or Capital Gains Tax - transfer of property by sibling

[Rosaseby]

I bought a property 10 years ago but in my sisters name as I could not get a mortgage. I paid the deposit, mortgage payments and insurance payments and any financial costs incurred on the property. It was rented after 2 years. My sister is paying property income tax up to now and I reimburse her every year.

The property has now been transferred to me by my sister completing a form and notifying Land Registry. I will pay property tax from 2023-24.

What are the tax implications on her and are they due now? Her accountant is asking for me to pay her Capital Gains Tax in this tax year but I have been advised that it is due when the property is sold. I am afraid that I will end up paying capital gains tax twice. Also am advised that should we both survive 7 years after I sell the property, the tax will not be due?

Please can someone explain to me which tax(s) is due and when it is due? Is the 7 year before death rule applicable?

I want to do the right thing but I have no idea what is due and when and who pays it? There is no disagreement that I have to pay any tax incurred by my sister.

Thanks in advance.

[atticus]

You should be seeking expert professional advice, and not asking on an online forum peopled by anonymous posters. Getting this wrong will cost a lot of money, and surely expenditure on good advice will be a worthwhile investment.

NB your reference to 7 years suggests confusion between Capital Gains Tax and Inheritance Tax.