We bought a house 10 years ago as a place for my son and his family to live. The cost was £250,000. Last year my son bought the house from us and the house was valued at £330,000 but we gifted him £32,000 so that he could afford the mortgage. Was this OK or do we need to also declare the £32,000 as capital gains? 

Arthur Weller replies:  

The gift of £32,000 is irrelevant to the capital gains matter. However, since the house was worth £80,000 more when you disposed of it, than when you acquired it, you have made a capital gain of £80,000. This is because any transfer to a connected person (e.g. a son) is deemed by the tax rules to be at present market value.