CGT on buytolet property

[Ali85]

Hi,

My mother owns buy-to-let property which has an outstanding mortgage on it. This is the only property she has ever owned. She is planning to gift the property to me, whereby I will take out a new mortgage on the outstanding amount.

What will be the tax implications on her for this? She previously had a normal mortgage, but with the financial crisis the only way she could keep hold of the property at the time was via a buy-to-let, interest only mortgage.

Given this is the only property she has owned does CGT still apply?

Thanks

[pawncob]

Gift to you is a disposal for CGT purposes, so a gain will (probably) arise. The type of mortgage is irrelevant. If it was her PPR at any time, she may be eligible for relief as well as letting relief.