Tricky situation CGT on deed of gift

[Aqibakhtar10]

Hey everyone,

So my cousin had a property gifted to her at an under valued price a couple of years ago. She's planning to sell the property now and she's not helping the buyer out; she's selling it for what the property is actually worth.

Property sold as a deed of gift to her for 75k when it was worth 700k. The donor had bought it for 45k.

She is selling the property for 850k.

She's now paying the CGT over the 150k she made in gains over the past few years. The donor is losing sleep now, as his tax advisor has told him he's gonna have to cough up the gains he made from 45k to 700k because he's the one who sold it an undervalued price to someone other than his spouse.

Is there anyone out there who could help the donor out?

Thanks all

[AGoodman]

Assuming PPR did not apply to the gift, it sounds as though the donor is already well advised. It's unlikely that he could reverse the transaction and, even if he could, on grounds of mistake, it would involve a Court application.

He needs to pay the tax plus any interest and penalties (if any). He would have a good moral case (but not legal right) for asking the donee to fund that.