I have inherited my mother's flat and want to sell half of it to my cousin - the cost to my cousin is based on the probate valuation figure. What are the tax implications for me? Will I have to pay tax on the sum that he pays me for his share?

Arthur Weller replies: 
The probate valuation figure is your base cost for capital gains tax purposes. If the flat is now worth more than this probate valuation figure, then you will be making a capital gain on half the increase when you sell half the flat to your cousin. When selling at an undervalue (i.e. not a 'bargain at arm's length') HMRC usually argue that the amount paid is ignored and use market value instead. See HMRC’s Capital Gains manual at www.gov.uk/hmrc-internal-manuals/ capital-gains-manual/cg14530 and subsequent pages.