Family gifted deposit

[ard]

Situation:
My daughter want to sell her flat and is prepared to gift deposit us £20k if we buy it from her.
The flat is valued at £225k. With the gifted deposit we will pay £205k (the mortgage of £170k will be arranged on a value of £225k). We have some additional cash to put down as deposit.
Question:
If we sell the flat for, say £250k, for CGT purposes can I use £225k as the purchase price as this would then bring us below the CGT threshold (using mine and my wife's allowance).

[mullet]

Transactions between "connected persons" (you and your daughter are indeed connected) are deemed to take place at market value. So in your CG computation you ignore any amount paid and replace it with market value.

Valuation is not a precise science, and you need to get a valuation for CGT purposes from a suitably qualified person rather than a "valuation to market" such as would be provided by an estate agent.