A client gifted a property to their daughter, which she has since been renting out. She is now considering selling the property, which is not her main residence. In calculating any potential capital gains tax (CGT) liability, what figure should be used as the base cost to be deducted from any disposal proceeds? 

Arthur Weller replies:  

The figure to use for the daughter’s base cost on the sale of this property is the market value of the property on the date the parent gifted it to the daughter. See the end of the first paragraph in HMRC’s Capital Gains manual at CG14530.