Postby Lambs » Tue Nov 20, 2018 10:40 am
C,
Generally speaking, the recipient of a gift will have a base cost equivalent to the market value of the asset at the date of the gift/receipt. That is because, despite the fact that the donor (you) gave the asset to him for no proceeds, HMRC is entitled to treat the transfer as being for that same market value.
In other words, you should have accounted for CGT on the gift 8 years ago, just as if you had sold it for its market value of £100k. Which is why your son can then work on the basis that the property "cost" him £100k: CGT has already been paid on that basis.
Your post does not say whether you did so or not; you might very well have paid CGT at the time of the gift. I mention it because this is an often-misunderstood part of the CGT rules: generally speaking, gifts are NOT CGT-free (except generally between spouses / civil partners).
With regards,
Lambs