Inheritance Tax etc

Ludmy

My question is:   I own two flats and would like to gift them to my daughter.  One of the flats used to be my home and then I rented it out for 8 years until Jan of this year since then it has been empty.  The other flat directly above has been home to my 20 year old daughter for the same amount of time.  I in the meantime rented a home where I cared for my mother.  I would now like to gift these two flats to my daughter.  Will she have to pay capital gains tax on them? Does she have to wait 7 years before they are tax exempt.  Is someone able to give me an idea of the tax implications to my daughter or me by this gift.  Much appreciated.  Ludmy.

justworriedabit

To be clear both flats were in your name? If so she will only pay CGT when she sells and if she sells for more than you gifted them at, plus here CGT allowance for the year about 12k.  You may be liable for CGT - therefore, CGT will be paid by here if she sells for more than you gifted at and you will pay CGT if you gifted at more than purchase price minus your personal allowance of 12k-ish
The 7 years rules  you refer to is the IHT a separate thing -  people pay on over 325k plus allowance of their main property of approx 175k I think it is but check the links below.

https://www.gov.uk/capital-gains-tax/what-you-pay-it-on

https://www.gov.uk/inheritance-tax/gifts

gettingtheresometime

does your daughter own her own home at the moment & if she doesn't would she want to live there because if the answer is no to both questions then she'll lose any first time owner benefits that she could take advantage of when she decides to buy a property that she wants to live in.
If the cunning plan is for her to rent them out does she want to be a landlord with all that that entails?
I think there are other questions that need to be considered other than whether they would be IHT exempt - but to answer your question there's a sliding scale so yes, if you died after 7 yrs your estate (not your daughter would potential be liable for IHT)