Thank you for your question..
Giving the property that is his main residence as a gift to his daughter would not result in CGT on the father as he would be transferring the property that has been his main residence during the period of ownership.
The father should be mindful of the fact that the gift would be regarded as a potentially exempt transfer for inheritance tax purposes. If he were to survive for 7 full years from the date of the gift then this gift would be out of scope of IHT.. more information on this can be found here
The daughter would receive the property free of tax as there is no tax on gifts.
When she sells the flat, unless it is her main residence for CGT puposes, any gain made on sale (difference between net sale proceeds and valuation at the time of gift) would be chargeable to CGT after taking into account the gains allowance of £11,100. She would not pay CGT on the value of the property but on the gain made. CGT rate of 18%, 28% or a combination of both depending on her total taxable income including the gain in the year of sale.
She would have to report the gain on supplementary page SA108 when completing and filing her tax return.
I hope this is helpful and answers your question.
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