A client with an annual income of approx £30K owns a small property that he had let for several years but has been empty for the last two. He has never lived in the property. He now wants to transfer ownership of it to his daughter. The original cost was £120K and market value is £170K. The plan is that there will be a sale to the daughter for £50K. Does this mean that (a) there is a gift of £120K (MV less consideration) for inheritance tax purposes and (b) there is a capital gain of £50K (MV less original cost)? Somehow doesn't feel right but looks like it is! If so, is there another way of doing it, to achieve the same net result between father and daughter but without the CGT charge?