I am selling my only property to a friend. I have no bankruptcy issues or loans outstanding and therefore no charges. The property is owned outright. It is valued at around £380,000 and I will sell to my friend for £250,000, as I am sadly dying and have no heirs; I would rather it benefit someone else. They are buying with a mortgage. I understand this is a below market value sale; they are intending on raising mortgage and using a deposit from their savings in a ‘90:10’ fashion. Is this a concessionary sale? My understanding is that it is not deemed concessionary as the purchaser is utilising their deposit funds as well.

If you look at www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg14530, and subsequent pages there, you can see that this not a 'bargain at arm's length'. Therefore, for capital gains tax (CGT) purposes, it is deemed as though you transferred to your friend for £380,000, the present market value. In respect of CGT, this may not make any difference to you, because it is quite possible that this property has been your main residence for all the period of your ownership, and so you pay no CGT on its disposal. However, as far as inheritance tax is concerned you are making a potentially exempt transfer to your friend of £130,000, the difference between the market value (£380,000) and the consideration (£250,000).