Would there be any capital gain from gifted investment property? If a parent hands over her property to her daughter that she has rented out (as it is not her residential property) for nothing, will capital gains tax arise if the daughter does not sell it ?

Arthur Weller replies:
The mother will certainly have to pay capital gains tax (CGT) based on the difference between what she originally paid and the current market value of the property. The daughter will obviously not pay any CGT if she does not sell the property; but if she does, her base cost will be the market value of the property on the date it was gifted to her.