so if a sister gives her house to her other sister no tax but hold over relief applies.Not a good idea then.
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What holdover relief do you think could be claimed on a residential dwelling?
But yes in principle you are right. It is in no-one's interest to hold over a gain that would not be taxable in any event.
Whether the bill is large or not depends on the figures, and also on one's opinion of what large is.
But as I have explained in your other thread on this same proposed transaction, sister B's base cost for any future disposal by her will be the market value at the date of the gift from sister A. She will pay CGT by reference to that figure, but only if she does not live in the property of course.
Not sure what holdover relief you are claiming though?
Not a business asset for s.165 and not immediate IHT charge under s.260
But if there is no tax anyway because of PPR then the gift makes most sense.