Does a cut-price house sale attract tax?

Q We have a buy-to-let property we would like to sell to our daughter at a reduced price. It is valued at £160,000 and has an outstanding mortgage of £70,000. We would like to sell it to her for £90,000. How can we do this and what are the tax implications? PD A The mechanics of the sale are the same as for the sale of any property, except you won't need to involve an estate agent (or pay their fee). As the same solicitor cannot act for both buyer and seller, you and your daughter will need to each arrange a solicitor who will guide you through the buying and selling process. As far as tax goes, you will be liable for capital gains tax , and your gain will be calculated using the market value of the property rather than the price at which you sell it to your daughter. So the gain will be £160,000 minus what you paid for it, and minus the costs involved in buying and selling it. This figure will be split between you and your husband, and if your and his shares are greater than the annual amount of allowed tax-free gains – currently £10,100 – you will have to pay CGT at either 18% or 28% (depending on your income) on the amount above that level.