capital gains liability

[birdsong]

When my daughter moved to work in London some 5 years ago my brother and I purchased a flat for her.
We both contributed half of the cost, and the flat was registered in the names of my daughter and my brother.
On the coming occasion of my daughter’s wedding my brother would like to give my daughter his share of the flat to enable her to become the sole owner.
But since the initial purchase 5 years ago, my brother’s half share has significantly increased in value.
What is his position in respect to any CGT on the increase in value of his half, if he gifts it to my daughter? On the assumption that he will have a CGT liability if he makes the gift, is there any way he could mitigate his CGT liability

[pawncob]

Your brother's gain is the current market value less the original cost. He can offset his annual allowance against the gain.

[birdsong]

Thank you very much Pawncob. I did however very carelessly omit a crucial factor. My brother resides in Canada and has never resided in the UK.
He has since been informed that his gain will be taxable in Canada and that he will have no UK liability due to the double taxation Treaty. Do you now see it this way?

[pawncob]

You should read this.
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/661467/Taxing_gains_made_by_non-residents_on_UK_immovable_property_-_consultation.pdf

DTAs normally require gains to be taxed in the country of residence, with a deduction of the tax paid elsewhere, so he'd declare in Canada and get an allowance for the UK tax paid.

[bd6759]

It is actually the other way around, but the result is the same. The DTA allows the gain to be taxed in the UK. But as you say, the Canadian authorities will give relief for the UK tax paid.