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Thanks for the prompt reply.
Please conform the first part of your reply...
'If you father was to sell the property to you at below market value, HMRC would regard the sale to have taken place at market value because it is to a connected person.'
Does this mean that they see the sale as 112k or 150k? This is where the CGT issue comes in.
The rest of the reply was explained perfectly, thank you!
One last time to ensure I am fully with you...
The acquisition cost is what the individual paid to buy the asset. However, market value at the acquisition date is normally substituted if the individual did not pay market value for it.
Hence, although I would pay 112k, HMRC would see the sale as 150k. In practice this means that if I were to dispose of the property at some date in the future at say a value of 170k the amount due would be 2.5k (((170-150)-11)*0.28)))
Am I correct in this assumption?