IHT vs CGT on transfer of investment property to family member

IHT vs CGT on transfer of investment property...

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Investment property owned by father with open market value of say £200K (with a £40K mortgage).

What would be the most tax efficient method of transferring to the daughter, taking into account CGT and IHT.

Would it be possible to "gift" the property to the daughter (at nil consideration) on the assumption that the father survives 7 years, thereby lifting this out of the IHT equation. If done this way, would this "gift" be assessable to CGT at the deemed open market value?

An additional factor would be the mortgage which would obviously need to be discharged. Would it make sense for the daughter to raise/pay £40K directly to the mortgage company to redeem the mortgage, or would this compromise the "gifting" aspect (ie. would it be classified as consideration of £40K). As an alternative, the daughter could "lend" monies to the father who would then redeem the mortgage himself if this was a better option.

I know IHT planning is something that needs to be looked at as a whole, but I'd appreciate any input on this specific transaction.
TS

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