My dad bought a property for £450,000 in 2006. He has since extended the property into three flats and refinanced several years ago. The three flats are now worth £1.4 million in total. He wishes to retire and sell/gift one to me for below market value. With £625,000 left on the mortgage, is this even possible? The flat has a market value of £450,000 and he wishes to sell it to me for around £300,000. His aim I guess is to avoid a huge capital gains tax (CGT) bill. Any advice would be appreciated. 

Arthur Weller replies: 

Your father can certainly sell/gift one of the flats to you. But presumably he would need to sort things out with his mortgage lender. He can charge you £300,000, or £450,000, or any different amount, or gift for nothing; it makes no difference from a CGT perspective. Since he is your father, for CGT purposes when he transfers to you he is deemed to be selling for its present market value (i.e. £450,000).